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Subject:  Re: withdrawals Date:  11/26/2013  11:56 AM
Author:  TMFPMarti Number:  18854 of 20599

I have a lot of money in my 403(b) but need to take money out without borrowing it or paying a penalty. I was thinking of selling some of the mutual funds in my Roth IRA but only if I don't have to pay taxes on the sale; I am not 59 yet.

There is never a tax effect of a sale in an IRA. The only thing that matters is withdrawals. As long as you withdraw no more that the total of your contributions there will be no tax or penalty. See Chapter 2 of Publication 590.

I am not concerned right now about my retirement because I have enough for that and intend to keep working for 15 years. I am much more concerned about the present because I can't pay my bills now and have no emergency fund.

What you should be concerned about in the present is the fact that you're living beyond your means. You need to set some financial goals, e.g., pay off your debt and build up an emergency fund. The you have to produce a budget that gets you there. Then you have to live by it.

The short story is that you need either more income or less spending. Figure it out, or you'll never get out of this situation.

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