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    Leon187's Avatar
    Leon187 Posts: 2, Reputation: 1
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    #1

    Jul 9, 2007, 03:33 PM
    Pulling out 401K early
    I was with a company for 14 years and I have a pretty healthy 401k that has remained with my previous company. I had a small loan out against it, so I would need to pay that off in full to roll it over. I have signed up with my new company's 401k, and it is slowly building. I have some debt I would like to pay off, how much would I be taxed if I were to pull it out early and pay off debt and then roll it over? I am 34 years old, I own a home, I just didn't know if that was a bad move.
    talaniman's Avatar
    talaniman Posts: 54,325, Reputation: 10855
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    #2

    Jul 9, 2007, 03:53 PM
    Yes it's a very bad move in my opinion You could lose as much as 30 percent with an early withdrawal. Please don't penalise yourself just to pay some one. How much debt are we talking about??
    Leon187's Avatar
    Leon187 Posts: 2, Reputation: 1
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    #3

    Jul 9, 2007, 03:59 PM
    Close to $12,000... I guess I am getting nervous because my husband and I are having our first baby in Feb 2008 and I am getting scared that I don't want any debt.
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