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I would keep the money in the plan and only contribute a little until your debts are paid off, then each year that you get a raise, I would increase my contributions to the 401k by 1%. Lets say you get a 4% raise, take 1% of that and contibute it to the 401k. Your take home pay still goes up by more than 3%. Remember that additional 1% you contribute will lower the overall taxes you pay.
Hope this helped. If not, please follow up.


Thanks Bill for responding. It has helped. Just another thing..

I had left the company a year ago and the letter I received from the third-party plan administrator does not have an option for me to stay in the plan. My options just seem to be cash out or rollover, and from your calculations, it seems to be a no brainer which option I should choose.
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