I've been off work since January, and we're having some deep money issues as a result. I know I can resolve them if I take the money from my 401K, but I also know how ridiculously stupid that is. My question is, is it worth it to fix the short term issues and pay it back in the long run? I would probably lose $1500 in taxes. Hubby and I are both 35 so it's not like we're retiring for a while, but I also don't really want my car to be repossessed. Anyone else ever been here?
Answer by But_Mommie at 1:38 PM on Jul. 8, 2011
Answer by Ataemommy at 1:38 PM on Jul. 8, 2011
Answer by tspillane at 1:45 PM on Jul. 8, 2011
Answer by katiemomNY at 1:56 PM on Jul. 8, 2011
Answer by slw123 at 2:41 PM on Jul. 8, 2011
My dh was out of work for 10 months. Our house went into forclosure, my car was constantly on the verge of repossession. I took a hardship withdraw from my 401k to try to keep my house from getting forclosed on. That is the only situation I would recommend it. I only took $1800 so my taxes and penalties were only a few hundred. If your talking about a fairly small amount like that, it is probably ok. If your talking thousands in taxes, i wouldn't. Remember you will pay taxes, plus a penalty. My check was taxed when i got it, about $200, then it made a couple hundred dollar difference when i filed my taxes. If you can take a small amount just to keep it from repo, go ahead. But like someone else said, if that is only delaying the inevitable don't do it.
Answer by Trinity001 at 11:32 PM on Jul. 8, 2011