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Subject:  Re: IRA withdrawal for college costs Date:  5/5/2012  11:35 AM
Author:  SeattlePioneer Number:  305122 of 312188

<<I have a $40K IRA set up to pay off sons student loans. Loans currently at 7.3%. Should I take IRA out (without penalty for ed expenses) or hold IRA which made 11% last year. >>

In general, the advantage of an IRA is to avoid the often high income tax rates while people are employed and shift that income into a period of retirement (or possibly unemployment) when tax rates are lower.

If taking money from the IRA would cause your income tax rates to spike, this would be a poor time to cash in that asset.

Seattle Pioneer
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