Guest guest Posted August 17, 2006 Report Posted August 17, 2006 Another benefit you may not be aware of is that a ROTH IRA, which accumulates interest growth tax-free, becomes totally liquid at the time of your disability with no penalty. You do not have to prove a financial hardship to withdraw money. Under normal circumstances you wouldn't be able to withdraw funds from such an account until age 59 1/2 without penalty. I wouldn't recommend cashing in any retirement type funds, except as a last resort. If you own a home and have equity, perhaps you could use that to sustain you until you get income again. The interest that you pay should be a tax write-off for you and your retirement funds will continue to grow. Quote
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