I am 33 and will be starting fellowship this upcoming July and will be making about 75k for the year. I have roughly 41k in a 401K from my soon to be prior employer that I need to figure out what to do with. My base living costs (insurance, one car payment on a Toyota rav4, two kids preschool tuition, internet/cable) is about 4500 / month. I am thinking about cashing out the 401k and using it for living expenses during fellowship but am not sure if this is the wisest idea as many people have advised against it. My reserve about not cashing it out is that cash flow is going to be an issue next year and I would prefer not to rack up credit card debt. The other kicker is my student loans will come due starting half way through the year. I would have to do IRB and it looks like an additional 400-500/month. I am in a high paying specialty so when I finish I should be able to recontribute quite a bit to retirement every year.
Other related questions...
(1) Can I take out partial disbursement and roll the remainder over (ie: take out 20k and put 20k in a rollover IRA)? Even an additional 15k (after taxes and 10%) would allow us to breathe a bit more during the fellowship year.
Any advice is greatly appreciated!
Other related questions...
(1) Can I take out partial disbursement and roll the remainder over (ie: take out 20k and put 20k in a rollover IRA)? Even an additional 15k (after taxes and 10%) would allow us to breathe a bit more during the fellowship year.
Any advice is greatly appreciated!
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