dbsb3233
Well-Known Member
- First Name
- TimCO
- Joined
- Dec 30, 2019
- Threads
- 54
- Messages
- 9,351
- Reaction score
- 10,884
- Location
- Colorado, USA
- Vehicles
- 2021 Mustang Mach-E FE, 2023 Bronco Sport OB
- Occupation
- Retired
Sound planning is maximizing your net financial situation.Creating a tax liability, just to be able to take a tax credit is not sound financial planning(or advice).
Obviously it's much better to do it if over age 59.5 where there's no penalty (as I said). But if one is under 59.5, one might still come out ahead if the additional income tax paid (from not being able to claim the $7500 tax credit) costs more than the 10% early withdrawal penalty. (Or even better, convert it to Roth as Shutterbug suggested.)
Obviously it depends on people's overall tax situation, and preferences. Sounds like you're dead set against any such considerations, which is fine. To each his own. Just throwing it out there for anyone else as well, in case they happen to be in the right situation.
Sponsored
Last edited: