I currently have a credit card that is at about $17,000. This was due to unexpected emergencies, unemployment and sometimes sloppy spending over the course of 10 years that unfortunately snowballed to where it's at now.
I have a SEP-IRA that would have enough to essentially pay that off after taking the withdrawal penalty, though I haven't looked into this enough to see if that includes taxes as well.
That account has mostly been employer-contributed and I am no longer with them. I don't anticipate putting anything into it as I've seen minimalistic gains that make me feel that it's just not worth it.
Under the SEP, I make $60/year gains with no employer contribution. With my credit card, I'm paying around $500/month to slowly chip the debt away.
To me, it makes more sense to close the SEP and put that money towards the credit card to pay it off within a few months and get an additional $500/month to put towards savings, new employer 401K, house improvement, etc.
Is there any reason I couldn't or shouldn't do this?
Submitted May 24, 2019 at 07:20AM by InvaderDem http://bit.ly/2K6JcGt
