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rsavoy: "I am in the process of selling my home AND changing jobs. I will be making a profit (sale price minus outstanding mortage). I plan to pay off my credit card debt with the proceeds from this sale, or am I better off taking the 401k distribution available to me because of the job change. My intent is to purchase a nother home in about 12 months."

I am not sure that I fully understand the question, but here goes --- it rarely makes sense to take an early distribution from a 401k (or IRA, for that matter) to pay CC debt. You will owe income taxes and a 10% penalty if you are less than 59 1/2.

I also respectfully disagree that "sale price minus outstanding mortage" measures your "profit" from the sale of the home, but that is a discussion for a different post, if you are inerested. Based ont he limited information you have given us, I would use the net proceeds of the sale to pay the CC debt.

Just my $0.02. Regards, JAFO

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