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|Subject: Re: Poll: 401K Roll it? Take it?||Date: 4/3/2007 7:45 PM|
|Author: clifp||Number: 56566 of 78165|
LOL, I knew the results of this poll before I even pushed the submit button.
Sure enough 100% said roll it over.
To be honest in order to give you good advice, we do need some more
information. 13K in credit card debt is pretty significant. What is the interest rate and is there anyway you can roll it over to another credit card with a low introductory credit card balance?
If the answer is no and the rate is 24%+ believe it or not you maybe better off withdrawing (or even better taking a 401K loan) say 15-20K to pay of the credit card debt. The balance of your 401K should be rolled over, no ifs ands or buts.
For the don't touch the 401K crowd, do the math. At 24% interest rate on $13K is $260/month or $3120 in non-deductable interest, which probably what the minimum payments are. It would require roughly a $20K withdrawal to pay off the debt. The 20K left in an IRA would be fortunate to make $2000-$2500/year (10-12.5%) and quite possible much less.
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