Financial Advise???

[St. Lou Stu]

Originally Posted by shilala

I believe the penalty on the withdrawal is 22%.

Not sure about the penalties..... each may vary slightly. Plus income taxes at the end of the year. Unless the 401 institution withholds for you.
Either way, it is taxable income once withdrawn.

But the compounded interest over the life of the credit card debt would exceed the penalties and taxes if I am guessing correctly. I didn't even do the math. 19% is NUTTY.

edit after the fact..... If it isn't being done to pay down in full.... It nullifies the points above regarding the CC interest.
IMHO, if you're willing to take the 401 hit, it must be done to completely resolve the CC debt.