Our family business has not fared well over the last few years, and our savings are completely gone. I am a stay-at-home mom, but have a significant amount built up in my 401k from when I was working. If I cash it out, we will have enough money to live on for a year. Therefore, the salary my husband takes from his small manufacturing business could be instead used to pay vendors, etc, and avoid bankruptcy. I know the penalties on early withdrawal from 401k are severe, but am wondering if it's worth it to take the hit to avoid bankrupting the business and the resulting negative impact on our credit score. Many thanks in advance for your advice.

I would not mess with a 401(k). I retired recently and realize now how important they are.

How old are you and your husband? Can the family business survive and become a success, or is it a losing proposition?