Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.
Unless you simply just want to pay all the taxes owed at once, you can request to be put on an installment agreement
payment plan. Doing this will allow you to pay over time and not be hit with possible early withdrawal penalties and being taxed on the money as ordinary income
that you withdraw from an IRA. As far as taking a personal loan, you will have the interest
to pay on it. Of course being put on an installment agreement, you will continue to accrue interest and penalties on the unpaid balance. If you would like more information on installment agreements, let me know.
So to answer your question, between the two, a personal loan and IRA withdrawal, I would say a personal loan. With it, in addition to the principal, you only have the interest to deal with, whereas with an IRA withdrawal, there is a possible 10% early withdrawal fee, if you are not 59-1/2 years old, and the inclusion of the withdrawal amount with your other income
, possibly moving you to a higher tax bracket.