I am getting ready to leave my employment with UPS and would like to withdraw all of my 401k to get all current bills paid off and start over. I am moving to another state

I am getting ready to leave my employment with UPS and would like to withdraw all of my 401k to get all current bills paid off and start over. I am moving to another state

First, its not a good idea to piggyback your question on someone else's thread, so I'm requesting your question be moved to its own thread.

I do NOT recommend that you do this. You should roll over your 401K distribution into an IRA or, better yet, into your new company's plan. You will pay a minimum 10% penalty on the distribution, plus the amount will be added to your taxable income for the year, increasing your tax liability.

If you can rollover the amount into your new company plan (you have 60 days to do so), you may then be able to take a loan against the funds to pay off your debts. The interest on that loan goes back to your account, so you are just paying yourself.