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Is it a good idea to withdraw $5,000 from my 401k to fund a Roth IRA?

April 26, 2017fund good IDEA money roth ira withdraw WITHDRAWING

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Is it a good idea to withdraw $5,000 from my 401k to fund a Roth IRA?

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IF you decide to contribute $5000 then you will be charge a one time penalty fee and taxes. I’ve done this already in 2008. Once you decide to retire and withdraw the funds from your Roth IRA, will not be penalized because if already paid the taxes. In the 401k, you are not paying any taxes when your employer is deducting the portion from your gross pay what you are being taxed on is your gross. If you decide to withdraw funds from your 401k on your retirement, you will be charge a lump sum amount of taxes and penalties. I hope I make sense.