Use IRA money to Help With Bankruptcy?
The bottom line is that Jason needs to find a long-term solution and any temporary job, instead of cashing out the IRA.
ANSWER: Yes. You will get hit with almost 40% in taxes and penalty fees if you use that money to pay the bills. You need to go out and get a job at UPS or delivering pizzas to make car and mortgage payments. The bottom line is that $9,000 doesn’t solve your problems. You need a long-term solution. You need to find a job instead of living off your IRA.