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Hardship Withdrawal Question

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Hello,

I recently incurred some legal fees and had to take out a loan to cover my first payment. I will likely need to make a second payment soon which I don't have the financial capacity to do and I dont want to take out another loan. Am I able to take a "hardship withdrawal" from my IRA? Its with fidelity in case that matters. If so, how do I do that? Can I just transfer the money to my checking account? Are there tax penalties? 

thanks!

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rated:
When you called Fidelity, what did they say?

rated:
qcumber98 said:   When you called Fidelity, what did they say?
  Good idea..

rated:
JaayOkay said:   Hello,

I recently incurred some legal fees and had to take out a loan to cover my first payment. I will likely need to make a second payment soon which I don't have the financial capacity to do and I dont want to take out another loan. Am I able to take a "hardship withdrawal" from my IRA? Its with fidelity in case that matters. If so, how do I do that? Can I just transfer the money to my checking account? Are there tax penalties? 

thanks!

  You can make a withdrawal (called distribution) but it will usually incur penalty and tax. You can avoid penalty if you are of retirement age but a hardship will not get you out of the penalty.

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Roth or Traditional?

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Apply for a zero percent on purchase credit card, and pay the lawyer with that.  Then figure out what to do later.  Paying the 10% penalty and possibly having the distribution pushing you into a higher bracket, just makes getting IRA money too expensive.

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