IRA question

[71T Targa]

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?

[jhc]

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.

[competentone]

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.

[71T Targa]

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...