Tips For Those Struggling in Economic Downturn

You don’t have to look far these days to find someone who is struggling to make ends-meat. If you aren’t one of the unlucky ones yourself, everyone knows a friend or family member that has lost a job recently. This article is designed to offer potential suggestions, related to retirement funds, to help those in need.
Did you know there are several ways you can pull money from your IRA without having to pay the 10% IRS penalty for being under 59.5 years old? Unless it is a ROTH IRA, you still have to pay ordinary income taxes on the distribution, but can forgo any penalties. We will look at each of these options.
Most people do not realize that they can pull funds from an IRA (without penalty) to pay medical insurance for themselves, their spouse, or their children. To qualify, all of the following conditions must apply.
-They lost their job
-They received unemployment compensation paid under any federal or state law for 12 consecutive weeks because they lost their job
-The distributions must be made during either the year the unemployment compensation was made or the following year.
-The distributions are received no later than 60 days after they are reemployed.
The above example was for people who need to pay for medical insurance. However, other distributions (without penalty) can be made if you…
-are disabled
-are a first time home buyer (maximum limit of $10,000)
-are using the distribution to pay for higher education expenses for yourself or family
-are a qualified reservist (had military active duty after 9-11-01 for more than 179 days)
- have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income