Quote:
Originally Posted by KTP
Since you can pull out any money you contribute to a IRA tax free and penalty free, wouldn't it somewhat make sense to keep your EF in your IRA if you are faced with an either/or situation? You can have the IRA invested in a laddered CD just like you would the EF with the advantage that you pay no taxes on the interest of your EF (since it is in your IRA).
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I pretty sure this only applies to Roth IRA's. The contributions could be pulled out penalty and tax free. It is still a good idea to have an emergency fund seperate from your retirement, so that you don't have to dip into your retirement funds in an emergency.