Is this Bad?

I got a contribution to an IRA account I have from my job. He offers this because he doesn't have a 401K plan. Every year a check gets written to my name and I deposit it into the IRA account - however, I haven't once put the whole thing in there, every year is something different that comes up BUT This year I am putting a $1,000 towards a car we almost have paid off b/c baby is on its way! Am I going to regret this when I have no $$ in this IRA account? I feel so guilty but at least I am not going shopping with it. Please help me justify it.

Re: Is this Bad?

I dont think its bad b/c you are not spending it out of character. You are using it on necesities. Do they check the accounts at all to see where the money goes or pretty much you get the check to do what you want with it? I wonder how he writes off that money as a business expense to you and if he gets audited does uncle sam come to you the depositer to see how come it wasnt used for an IRA and no taxes were paid on it- thats the only way I can see it as a bad thing.

Re: Is this Bad?

Why would you put $1000 towards a car you *almost* have paid off?

Just make your normal payments... you won't be saving any money in interest cause by now the payments would be mostly principal.


You should never pull or withdraw money from a retirement account. I can link so many threads that say this is one of the worst financial moves you can make.

Re: Is this Bad?

How much do you owe on the car? can you pay the entire thing off?

Re: Is this Bad?

I wouldn't. Not only for retirement reasons but it's very possible that your IRA contribution is an above the line write off and will have a positive effect on your tax liablity.

Re: Is this Bad?

I am not taking it out of the IRA account, just didn't put it all in. I am not sure how my boss writes it off, but I was never questioned about it yet.

I decided to pay some towards the car - just wanted 1 less bill a month when baby comes.