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Posted in Paying Your Bills
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murrk

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401K loan to pay off credit card debt

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Not a good idea.  The money would be taxed as regular income and there could be a fine for early withdrawal, plus you lose out on the benefit of compounded interest.

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murrk

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Not a withdrawal from my account but a loan from my account that I pay back with payroll deductions..  it's 4% interest rate 

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You still would be paying taxes and penalties plus losing out on the compo[unded interest factor that benefits most on retirement funds. m Instead, look for Dave Ramsey's site and follow hijs advice on debt repayment.  But DO NOT touch the retirement fund

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