Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm seriously considering an early withdrawl from my 401k to eliminate some serious debt. I've investigated budget re-arranging, paying the debt down over a period of time, but can't wait the 2 years to complete the debt elimination. This will not be a total withdrawl from my 401k, just a percentage. The question not answered yet is the tax issue. I know their is a 10% penality cost plus 20% Federal Tax hit. I realize the lost investment opportunity to this idea as well. What's the best way to figure the total tax impact of this debt elimination possibility? I'm just trying to understand if this is a realistic opition.

Helpful opinions and advice are needed.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.