No, don't touch it. It's not just the penalty for early withdrawal and the taxes you would also pay -- you need to know that no one can touch your 401K -- not even in bankruptcy. It would be a really bad idea to use your untouchable money for an unsecured debt like a credit card -- if you ever declared bankruptcy your 401K couldn't be touched, not even to pay your credit cards. Plus, as most folks here would tell you, almost always, folks run the credit cards right back up after paying them off with a loan -- whether the loan or cash out is from the 401K or a home equity loan. LEAVE IT ALONE. Don't even think about it. Post your numbers if you would like the folks here to help you find ways to save more $$ to put on the c cards. Megan
LEAVE IT ALONE. Don't even think about it.
Post your numbers if you would like the folks here to help you find ways to save more $$ to put on the c cards.
Megan
ITA with what Megan said - don't touch it.
As well as the tax and penalty implications, just think of all of that compounded interest you'll miss out on in the years to come.
Robyn
I agree with PP's. Don't touch it. You can do this. Strong will and hard work will make it happen!!!
I can't remember if you've posted numbers before, but if not, feel free to do so and we can help you come up with ideas to cut back!
Bex -
"Yesterday is history, tomorrow is a mystery, today is a gift -thats why its called the present."
Bex -
Just to wipe out the CC debt, then no I wouldn't touch it.
If there is more to the story, then it depends.
Becky
CL of 4th, 5th & 6th grade Scoliosis
No don't do that. You are doing great with your debt reduction. Be patient, and when you are done, you can save more and still have your 401 K.
Norma
"Patience is the best remedy for every trouble"- Plautus
Ok thanks guys, I won't do it....I don't want to...I have a deadbeat ex so my income is all there is.
I will post my numbers, income/debts/bills this weekend, thanks for the offer to take a look!
Thanks again! -Kim
Jennifer
Hi there,
Carmen Wong Ulrich recently answered a similar question.
Withdrawing from Your 401K Without Paying Penalties
http://housecalls.ivillage.com/home/archives/2009/10/withdrawing-from-your-401k-wit.html
Hi-
I have borrowed against my 401K twice.