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Use of 403B to pay off 2nd mortgage

Posted on: 29th Apr, 2010 03:19 pm
are there tax penalties if I take $10,000 to pay off a 2nd mortgage I had taken.
Hi Cheryl,

If you are less than 59 and 1/2 years old, you will have to pay a 10% penalty for early withdrawal from your 403b account. Apart from this penalty, there will have to pay taxes to the IRS on the amount withdrawn based on your current tax bracket. Thus, it will not be a very good idea to take money out of your 403b account to pay off an existing mortgage.
Posted on: 29th Apr, 2010 11:05 pm
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