Self-Pay / IRA?

[JRPTX 0]

Does anyone know if you can withdraw from your IRA to self pay?

Thanks.

[justduckie 0]

Does anyone know if you can withdraw from your IRA to self pay?

Thanks.

I'm a self pay and I took out a loan against my 401K to pay for mine. As for withdrawing.....call your plan administrator and they should be able to tell you if you can withdraw or not. I know the government has laws on what you can just take the money out for, but I don't remember if medical bills was one.

Good luck! I know it was the best $17,000 I ever spent.

[JRPTX 0]

Mine is not a 401K. It is an IRA that I have sitting at BofA in a CD. There is no administrator, or anything like that.

I guess I will call my accountant, which does my taxes. I just didn't want to deal with the prying questions he is likely to ask.

JP

[justduckie 0]

Just tell him you are having surgery and your insurance won't cover it. It's none of his business what you are having done, just that's it's medically related.

[Alexandra 55]

You don't even need to explain what it's for. This is YOUR money, and the only problem is that if you are taking it out of your retirement plan early there will be taxes and penalties to pay. If you're prepared to take that hit, it's no one's business what you plan to do with the the money you take out.

[JRPTX 0]

Thanks.

I have no problem handling the accountant. I just don't want to have to tell him it is none of his business if I do not have to. He has been doing my taxes for years and is somewhat of a family friend. I'm sure he would asked the obligitory questions of what is going on etc.....

So, unlike a 401K, If I withdraw from my IRA for medical costs I still get hit with taxes and penalty?

[Anwyn 0]

Yes... if you're younger than 59 1/2 years old you will have to pay normal income tax plus a 10% penalty. If you have the option of a home equity line of credit that may be a better option.

[JRPTX 0]

Thanks.

As I plan on moving this summer, I think I will just wait for the house to sell and use some of the proceeds from it. I am very fortunate to have developed significant equity in it.

We were planning on taking a vacation after the sale anyway. I'm thinking San Diego, with a side trip in to TJ to see Dr. Ortiz.

JP