Can You Withdraw Your 401(k) to Get Out of Debt?

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Can You Withdraw Your 401(k) to Get Out of Debt? – This is a place for the community to provide tips and advice on Can You Withdraw Your 401(k) to Get Out of Debt?. This topic was created by nadine uknow and the tips are provided by the community. The tips you add here can be your own or referred from another site. The best tips are then ranked at the top when up-voted by members of the community.

Tip 1 - When Paying Off Debt With Your 401(K) Makes Sense

Published: 9 years, 4 month(s) ago | Submitted by Susan - Kelly Mc Kenna | permalink

The experts warn against touching your retirement savings early, but there are situations where it is the best financial decision.
Tags: 401,student,debt,loan,credit,credit card,interest,penalty,tax,taxes,savings,retirement,financial,health,payment,budget,401k,students,retirement saving plan,fa seeker

For further reading: http://www.investopedia.com/articles/retirement/10/paying-off-debt-401k.asp ^[1]

Tip 2 - Cashing Out 401(k) To Pay Off Credit Card Debt? - The Simple Dollar

Published: 9 years, 4 month(s) ago | Submitted by James Rucker | permalink

A reader writes in with an interesting scenario: I'm 28 years old and I have two 401(k) accounts, both with about $30,000 in them. At the same time, I have

For further reading: http://www.thesimpledollar.com/emptying-out-a-401k-to-pay-off-credit-card-debt/ ^[2]

Tip 3 - Stop! Never Cash Out Your 401(k) To Pay Creditors

Published: 9 years, 4 month(s) ago | Submitted by Jill Nyren | permalink

Withdrawing from your 401(k) can be a tempting way to pay overdue bills, but it's a mistake. The IRS is the only creditor who can legally seize your 401(k).

For further reading: http://www.moneyunder30.com/never-withdraw-from-401k-to-pay-creditors ^[3]

Tip 4 - Withdrawing vs. Borrowing From 401(k) to Pay Credit Card Debt

Published: 9 years, 4 month(s) ago | Submitted by Ron Perry | permalink

When downsizing or job loss makes credit card debt unbearable, the 401(k) money looks tempting. But whether you take it or borrow against it, know the consequences
Tags: earnings,pay taxes,card debt,IRS,credit counseling,foreclosure,Internal Revenue Service,tax bracket,current credit card,interest rate,taxes,credit card debt

For further reading: http://www.foxbusiness.com/personal-finance/2013/04/25/withdrawing-vs-borrowing-from-401k-to-pay-credit-card-debt/ ^[4]