What are the risks of using my IRA to pay off student loans?
Using your IRA to pay off student loans carries numerous risks. Primarily, you'll incur taxes and a 10% penalty for early withdrawal if you're under 59½. This can significantly reduce your overall retirement savings, and you may end up worse off financially. Additionally, withdrawing from your IRA removes potential growth on those funds, affecting your retirement security. To mitigate these risks, explore alternatives like loan consolidation, income-driven repayment plans, or speak with a financial advisor for personalized strategies.