Hello fellow BH's,
I'm in a bit of a bind financially, and would like this forum's input on how to best get funds out of my current 403b at TIAA after I leave my employer.
The primary goals of this are to:
1. Pay off debt (funds from 403b should cover ALL outstanding debt and will leave me with 0 debt and some cash left over)
2. Take money off the table while market conditions are still favorable
To help you better understand the "why", I'm currently paying $1,000 - $1,200/month in interest across my credit cards alone. This is something that HAS to be done. I am 100% ok with dealing with the tax implications and penalties that will follow.
Questions:
1. I'd like to get "as much as I can" out of the 403b account without too much going to taxes and penalties, although that would be hard. Would it be more favorable to do this early next year? If i plan on leaving my employer, that means I could technically max out my 403b at the beginning of 2025 (making my taxable income for 2025 as low as possible to start), then after I quit, i would take the distribution as cash. Perhaps roll some over to a IRA/Roth IRA.
I am out of other options to get out of debt. Any other advice on how or the sequence in which I should do this is greatly appreciated. Remember the goal is to get as much out as possible to pay off debt and minimal taxes/penalties.
TIA
I'm in a bit of a bind financially, and would like this forum's input on how to best get funds out of my current 403b at TIAA after I leave my employer.
The primary goals of this are to:
1. Pay off debt (funds from 403b should cover ALL outstanding debt and will leave me with 0 debt and some cash left over)
2. Take money off the table while market conditions are still favorable
To help you better understand the "why", I'm currently paying $1,000 - $1,200/month in interest across my credit cards alone. This is something that HAS to be done. I am 100% ok with dealing with the tax implications and penalties that will follow.
Questions:
1. I'd like to get "as much as I can" out of the 403b account without too much going to taxes and penalties, although that would be hard. Would it be more favorable to do this early next year? If i plan on leaving my employer, that means I could technically max out my 403b at the beginning of 2025 (making my taxable income for 2025 as low as possible to start), then after I quit, i would take the distribution as cash. Perhaps roll some over to a IRA/Roth IRA.
I am out of other options to get out of debt. Any other advice on how or the sequence in which I should do this is greatly appreciated. Remember the goal is to get as much out as possible to pay off debt and minimal taxes/penalties.
TIA
Statistics: Posted by guwop — Tue Dec 17, 2024 8:28 am — Replies 6 — Views 272