blacktalon
Oct 5, 2008, 03:45 PM
I need some good advice.. First of all I am 61 years old and currently have income of $70K from both myself and spouse income. We have a home equity line of credit with a balance of $50K which is due in Dec 09. I am currently making quarterly interest payments of approximately $1000. I have a 401K plan from a previous employer presently valued at $136K. Should I cash in my 401K to pay off this $50K? I could then begin putting the max into my other 401K which currently is at $16K. I realize I would have the 20% taxes withheld which would leave me with about $108K. I could then pay off the $50K home equity, put the remainder in CD's or something and continue contributing the max into my other 401K. I'm not sure what to do about this and any help would be appreciated. Also the $136K is currently in an IRA which will no enable a loan process.