Free Washington Retirement Planning Community⁠⁠⁠

In this episode, we tackle one of the most common retirement questions:

“Should I use my retirement funds to pay off my debt?”

While paying off debt feels good, pulling large sums from your 403(b), 457, IRA, or annuity can create massive tax consequences, penalties, and long-term setbacks, especially for Washington State employees who rely heavily on their savings to supplement their pension.

We break down:

1. When using retirement funds might make sense

2. The hidden tax traps that come with large withdrawals

3. Why paying off your home with retirement money can be a six-figure mistake

4. The danger of wiping out savings to buy vehicles or eliminate loans

5. How small, strategic withdrawals differ from big lump-sum mistakes

6. Why “all you’ve saved is all you’ll ever have” in retirement

Then we shift to the question of the day:

How will Washington handle the new Secure Act 2.0 Roth catch-up requirement for high earners starting in 2026? We cover who’s affected, how DCP/403(b)/457 plans may adjust, and what employees should prepare for now.

If you're thinking about paying off loans before retirement, or if you earn over $145,000 and want to understand the new Roth rules, this episode is essential listening.

00:00 - Should you use retirement funds to pay off debt?

00:34 - Question of the day

01:20 - The tax consequences people often overlook

02:57 - Paying off your house: the six-figure opportunity cost

04:08 - Taxes, penalties, and the slippery slope of withdrawals

05:00 - When using retirement money might make sense

05:53 - The importance of strategic, small withdrawals

06:43 - Why protecting future savings matters in retirement

07:38 - Question of the day: Secure Act 2.0 Roth catch-up rules

09:19 - How Washington might implement mandatory Roth catch-ups

09:48 - What high-income DCP/403(b)/457 contributors should prepare for

10:55 - Join the free community for updates and training

Links:

1. ⁠⁠Free Washington Retirement Planning Community⁠⁠

2. ⁠Plan 3 Investment Advice⁠

3. ⁠Schedule Meeting⁠

4. More free resources at ⁠WATRSPERS.com⁠