Cashing out 401K

I'm a longtime member, but using an alias... hope you don't mind.

My DH and I are drowing in debt and want to cash out his 401K to wipe the slate clean in every sense of the word.

However, the company that he works for does not allow cash-outs unless he leaves the company. Are there ways around this?

We can't take a loan against the 401K bc we've done that already. HELP!

Re: Cashing out 401K

I would see if you can get a free financial analysis but don't cash out your 401k. Can you stop spending money on anything but the essentials? Start saving as much as you can and get a second job at McDonalds for the weekends.

Re: Cashing out 401K

They don't allow a hardship withdrawal? Tell him to check again.

The quickest way to remove debt is to simply bring home more. I agree with the PP, get a second job. Plenty of stores are hiring this time of the year.

Re: Cashing out 401K

Don't know a way around it, but I strongly urge you to NOT cabsh out your 401k. The penalty is huge. You giving away your money.

Plus, you NEED that money to retire on.

I got myself out of bad debt. I sold all the shizz I needed to. Extra DVD players. Jewelry. Nice coffe machine. I looked for all the crap that I could part with.

I cut down all my expenses. Bare minimum phone, cable. No mani pedi. No coffee at Starbucks. No eating out. Strict budget.

Now I would treat myself every once and a while cause you need to. It took me 2 years, but paid it all off. Now, 8 years later my credit score is over 800.

And yes, I got a part time job retail job. I did everything I had to do.

Good luck to you.

Re: Cashing out 401K

The only time you can cash out without a huge penalty is for a first time home purchase.

I used to work for a planner that assisted with debt management. Send me FM and I can help!