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[quote=Anonymous]OP, we are thinking about raiding our retirement account as well. Curious to other people’s thoughts.

DH and I are 50 and 51. We are both contributing the max with catchup contributions to our respective 401k plans ($62K per year + 14K employer matching). We have $189K and $117K in our 401k plans currently. We also have two Rollover IRAs with Fidelity from our previous jobs. Combined, we have $3.6M in those, all invested in individual stocks and ETFs and actively traded. Our IRA is up 32% YTD, up 37% over the past 1 year, up 98% over the past 3 years, and up 161% over the past 5 years.

We’re thinking about paying taxes and accepting a 10% early withdrawal penalty to pay down some debt: car loan, second mortgage. Would do it so we stay in the 35% tax bracket, but will still lose over half of what we withdraw to taxes due to penalty.

We’re up in our Rollover IRA by 32% ($875K) since January 2025, which blows the S&P 500 out of the water. Figure we could take out $200K and still be doing really well. New administration drama + active trading in tax sheltered account has been very profitable. Thoughts?[/quote]

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