IRA question
 

Got divorced and am up to my eye-balls in debt. How can I cash out an IRA with the smallest tax hit? Anyone BTDT?

Turn 59 and a half, use it for a down payment on your FIRST house, pay for school, otherwise 10% penalty and becomes ordinary income the year you withdraw.

What kind of an IRA? If it is a Roth, you can take out any contributions you made -- no taxes, no penalties.

I also believe if you roll a traditional IRA into a Roth, after a period of time -- I think it's 5 years -- you can pull out what you contributed; but on roll-overs and withdrawals, it's best you talk with an accountant.

Generally advise: It is probably better to not pull anything out of the IRA and just try to work harder to pay down the debt. The tax-free compounded growth available in the IRA is something you don't want to lose. Once the money is out, it is not like you can just deposit it back later.

Not answers I was hoping for, but good advice none the less. I was looking more for 'loop holes' that might be available. Maybe move the $$'s to my cat, or something like that... ;)