No. of Recommendations: 1
NO, and HELL NO....don't touch that money.

You would pay regular income tax rate and a penalty. You would never recover.

Take current income, and pay down debt. Figure out why you have so much debt. Your lifestyle needs to change and change quickly

If you take the money and pay down debt, you'll be back in the same boat with massive debt in 5 years, and without all the money in your 401K.

Plan to roll it over to a Vanguard or Fidelity IRA quickly. The sooner the better, before it gets lost. Never leave it in a dying plan. The custodian has no reason to monitor it for expenses or even watch it!...

Don't take a 401K loan. If the plan ends (or in many cases, you can't if you are not an employee of the company with the plan - and it is termnated so you may not have that option).

Don't raid home equity.

Just hunker down, SPEND LESS, don't contribute to retirement plans till you are out of debt.

You need to cut back spending, or you'll be in worse shape in a few years.

This is not free money. The only time you should tap it is if your LIFE IS IN IMMEDIATE danger from a medical necessity that needs immediate action (life bypass surgury after heart attack).....


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