No. of Recommendations: 1
I would like to begin investing, without the short term liability's hanging around my neck (aka: credit cards, loans) I would still have a nice chunk of change after the tax and 10% penalty hit. For investing in the long term, AND I would be able save, and pour money into the NEW
401k plan.


So how much debt are we talking about?

I think you have a lot more options than you realize-
1. a 401k loan,
2. cut back on your 401k contribution until the debt gets managable from regular inflows
3. A combination of 1. and 2.

Each of those options save you on taxes and the penalty, so from my perspective they are better options.

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