Hi Everyone
I’m in a horrible situation where my wife and I are splitting up. This forum has been so helpful in helping me set up my investments, so I really appreciate you all for your knowledge.
We are both 45 years old and own our own business. This year generated about 90K in income from the business.
Unfortunately, this was unplanned and we don’t have a lot of liquidity. We are in the process of selling our house (not sold yet) which we will end up keeping after all fees approximately 450K (so 225K each) but this will take several months to get the cash.
In the meantime, we need some short term liquidity of cash for the next few months just to survive find a new apartments, moving, etc.
Credit cards are near maxed so that’s not an option. There's also no one that can lend us the money either.
I’m thinking we will need about 40K but I’m not sure where to pull the money from.
Is it true I can take my contributions from the ROTH with no penalties? Would the traditional IRA be a better option to withdraw from and pay the penalty and taxes? What would you do with your back against the wall?
This is what we have in accounts
100K in husband Roth – Contributions were about 78K all has been there for over 5 years
30K in wife’s Roth – Contributions were about 23K all has been there for over 5 years
25K in a 457B - (wife no longer works for the state so no loans are available)
300K in Traditional IRA
I really hate that I have to do this and that I’m in this situation so please be kind.
There probably is not a right or wrong answer here so I’m looking for suggestions on what would be the least detrimental to us. If you need more info let me know
Thank you all in advance this whole thing really sucks.
Randy
EDIT: The house is in Puerto Vallarta Mexico so I can't take a HELOC unfortunately.
EDIT: We have no kids
I’m in a horrible situation where my wife and I are splitting up. This forum has been so helpful in helping me set up my investments, so I really appreciate you all for your knowledge.
We are both 45 years old and own our own business. This year generated about 90K in income from the business.
Unfortunately, this was unplanned and we don’t have a lot of liquidity. We are in the process of selling our house (not sold yet) which we will end up keeping after all fees approximately 450K (so 225K each) but this will take several months to get the cash.
In the meantime, we need some short term liquidity of cash for the next few months just to survive find a new apartments, moving, etc.
Credit cards are near maxed so that’s not an option. There's also no one that can lend us the money either.
I’m thinking we will need about 40K but I’m not sure where to pull the money from.
Is it true I can take my contributions from the ROTH with no penalties? Would the traditional IRA be a better option to withdraw from and pay the penalty and taxes? What would you do with your back against the wall?
This is what we have in accounts
100K in husband Roth – Contributions were about 78K all has been there for over 5 years
30K in wife’s Roth – Contributions were about 23K all has been there for over 5 years
25K in a 457B - (wife no longer works for the state so no loans are available)
300K in Traditional IRA
I really hate that I have to do this and that I’m in this situation so please be kind.
There probably is not a right or wrong answer here so I’m looking for suggestions on what would be the least detrimental to us. If you need more info let me know
Thank you all in advance this whole thing really sucks.
Randy
EDIT: The house is in Puerto Vallarta Mexico so I can't take a HELOC unfortunately.
EDIT: We have no kids
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