Thanks for your thoughts. I retired from my previous job last May and am collecting a $17,000 a year pension. Since then, I have found another job (making more money). The account I refer to is not a 401k. It is an annuity savings account funded by the state teacher's association. I have an additional $58,000 in several other acoounts (401a's, 403b's, mutual funds, etc.) and $54000 in a health savings account. The greatest part of my debt is college-related expenses for my two sons. My concern is, of course, becoming as debt free as possible as soon as possible. The replies I have received have confirmed my thought that it is better to leave the tax-deferred funds alone, allowing them to compound, and work on elminating the debt. This does not really pose a great problem, but I wonder about three to four years of those interest payments as opposed to three to four years of investing that monthly payment money. Again, thanks for your thoughts.