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Early withdrawal from 401K are subject to penalty at 10% of the distribution amount. In addition you owe tax on the amount taken out as distribution.
Tax on the distribution will depend on your overall tax bracket.
well im my case
my GF and i owe about 25k in debety
i have 15k in 401k
and 20k in savings
wanting to pay it all off.
as a note, im 31, shes 26 - So we would be starting over i guess, but debt free -
It may be advisable to use your savings to payoff the debt and take a loan, if that is a possibility, from your 401K to payoff the debt.
Some 401K plans allow participants to take loan
as in, tax free?
Yes, that is correct
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