207k views
3 votes
Mike is saving his emergency funds in an IRA account. Is his strategy a good one?

User Williette
by
7.7k points

1 Answer

5 votes
No. When he withdraws his funds from the IRA account, there will be taxes applied and he may not be able to get as much as he needs. It is best to keep his emergency funds in a separate account that he can access any time without any extra penalties. 
User DreamSonic
by
7.2k points