I have $30000 in a 401k i need to pay off credit card bills how much can i expect to leave with after taxes an

Answer 1

about 60% or $18,000. Not worth it. It's better to take a second job and accelerate you payments to the CC's than to cash in a 401K or borrowing against it.

Answer 2

Never, ever cash in a retirement plan. The only exceptions would be to avoid foreclosure or bankruptcy. In other words, your world would have to be on fire. By robbing from your retirement to pay credit cards you are putting a band-aid on a gunshot wound. The real problem here is you using credit cards to pay for stuff you can't afford. First thing-cut up cards. Then sit down and write out a budget. Make every penny count. If it ain't on the budget you don't get it. This is a trial and error budget and may take ya a few months to get right. You may find that you're going to be working another job, sell your car, buy a hooptie for transportation. If you cash in your 401k you will be in the same mess in a year or two. The only difference will be a lack of tax deferred piggyback that grows with compound interest. You will also wind up paying about 30% or more in taxes. Would you borrow money at 30% to pay off credit cards at 0-20% ????You would be better off getting a loan at your credit union. Of course, you'd be much better off if you were to heed everyones' advice about paying these things off by earning more money.

Answer 3

Never take money out of a 401k - you lose more in the long run. If you need to get rid of the CC bills try reducing you expences and rip up the CC and get a loan at a much lower interest rate. Also try prospoer.com for a loan rather than a bank. There are goups in there that will help.

Answer 4

NEVER take money out of a 401(k) they are meant for longrun savings since you get pretax benefits when you put the money in. Find some other means of funding.

Answer 5

Regular taxes plus a 10% penalty so ballpark......pretty close to 20k

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