Tax consequences of liquidating an ira

But there are some general rules to follow, and some factors to think about.

On the other hand, many of my med school classmates were able to consolidate their loans at 1.9%.Although Dave Ramsey recommends paying off all your debts ASAP, many wise people are willing to carry non-callable debt at very low interest rates because of the opportunity costs you would give up by paying it off.If your loans are at 3%, inflation is at 4%, and your savings account is paying 5%, it is easy to see mathematically why you might not want to prioritize paying that loan down. In 1993 I took out a 00 loan for undergraduate studies.The CPI year over year inflation rate can be found here (it’s currently 3.56%).Likewise, when you’re borrowing money at rates below guaranteed safe investment rates (such as money market funds, CDs, or FDIC-insured savings accounts), you might not want to pay it back too quickly.

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