Reply to Is it ever a good idea to use retirement money to pay off debt?

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Reply to "Is it ever a good idea to use retirement money to pay off debt?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]If you only have $13k worth of debt, and you can somehow "fully fund" retirement once this debt is gone ... I don't understand why you can't get it paid off w/o dipping into the retirement fund now.  Unless your definition of "fully fund" is different - I assume it means that both parties can put the max amount in per year as allowed by law, which is $17.5k each.  If you have that kind of $$, why can't you get the cards paid off??[/quote]

The max contribution for an IRA is $5500/yr[/quote]

Max for 401K is $17.5 per year (currently)

Max for Traditional or Roth IRA is $5.5K (currently, for those OP's age)[/quote]

Right. So theoretically, if OP intends to max out retirement after her credit card debt is gone, she means that she and her DH will save $23K each, or $46K total, on an annual basis. Even if most of this is pre-tax in a 401K, that's still a ton more than $13K and there seems to be no reason she can't just buckle down for 6-12 months and pay the debt off without touching retirement.

I don't understand your dilemma, OP. Unless you mean something else by "maxing out retirement" once the credit card debt is gone.[/quote]

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