Should I take money out of my money market account that is what I save to contribute yearly to my Roth IRA to pay off my current credit card debt? I acquired this debt due to career change, move across country, and failed relationship.

ANSWER

Expert Thomas Graham iii's Answer:

Yes, this nearly always makes sense assuming the interest rate on the credit card debt is higher than what you are currently earning in your Roth IRA. Chances are the credit card debt is at around 25% and your Roth IRA might be earning anywhere from 0%-10%. It will be much easier to contribute toward your retirement once your debt is paid off.

Thomas Graham iii, CPA, CFE

Oklahoma

7 yrs experience

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78 Ans.