I need $18K in house repairs. Do I take the money from my Roth, 401(k) or IRA?

MarketWatch

by Quentin Fottrell

February 19, 2026

AI-Generated Deep Dive Summary

A homeowner aged 61 planning to retire in six years faces a $18,000 challenge: fixing their roof and other home repairs while deciding whether to tap into their retirement accounts. With $14,000 in a Roth IRA, $43,000 in a 401(k), and $470,000 in a Traditional IRA, the decision requires careful consideration of tax implications, withdrawal rules, and long-term financial goals. The Roth IRA offers flexibility as it allows penalty-free withdrawals for home repairs under certain conditions. However, withdrawing from a Traditional IRA before age 60 could result in early withdrawal penalties and taxes. Similarly, borrowing or withdrawing from a 401(k) may also come with fees or reduced retirement savings. These considerations highlight the importance of balancing immediate needs with preserving retirement funds. This situation underscores the financial challenges many near-retirees face when unexpected expenses arise. Deciding whether to dip into retirement savings can significantly impact financial security in later years, making it crucial to weigh all options carefully. Seeking advice from a financial advisor or counselor is often recommended to explore alternatives and make informed decisions that align with long-term goals. For anyone nearing retirement, the question of whether to use retirement funds for home repairs is a critical one. It highlights the need to prioritize immediate needs while safeguarding future financial stability. Ultimately, preserving retirement savings as much as possible can help ensure a more secure and comfortable post-retirement lifestyle.

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Originally published on MarketWatch on 2/19/2026