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Bobbie Sage

Your IRA Can Help You Pay for Your Health Insurance Premiums

By March 9, 2010

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Keeping up on health insurance premiums while unemployed can be difficult. Especially since a lot of people choose COBRA and the premiums for COBRA are usually much more expensive than what one was previously paying through their employer.

Under most circumstances if one wants to withdraw money from their IRA there is a hefty penalty but if the money is withdrawn from the IRA and used to pay for health insurance premiums there is no penalty. Remember though that you must be unemployed for at least 12 weeks to avoid the withdraw penalty.

March 25, 2010 at 11:35 pm
(1) cl dickinson says:

I’ve been “unemployed” over 12 weeks (Since Nov. last year) but I have worked a week here and a week there (I think 3 weeks total). Even working these weeks, I have 12 weeks (or more) I’ve drawn unemployment benefits. So… can I pay using the IRA without penalty? and….. I was planing on paying for the whole year…. what if I do this, and then become employed?

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