I'm hoping some savvy financial wizards can give me a bit of advice. Last year I contributed $5,000 towards a Roth IRA through E*Trade. However, I've recently been thinking about using what I currently have in there to pay off a couple small student loans.

I have 8 SL total...5 are under $2,000. I know I'll be subject to a 10% withdrawal penalty from the IRA, but I'd feel better financially if I cashed out what I have in there ($4,360) and paid off 2 more of those small loans.

I'll restart an IRA or 401(k) when I get a full-time teaching job, but for now I'd feel more comfortable putting what's left in the IRA towards the SL. Any ideas?

I'd really appreciate the advice.

Navy,

I would not take the money out of a Roth. The 10% penalty and lost opportunity costs would be too much IMO to eliminate a $2000 SL. You can't go back and put another $5000 into the account for 2008 (after April 15th 2009)...Roth contributions are limited each year and that money grows tax free.

If you can make the payments on the SL, keep doing it...don't contribute money to your Roth for 2009 and use any extra money towards paying down the loans. The interest is tax deductible. Have you looked into consolidation?