Many 401(k) plans allow you to withdraw up to 50% of the value of your account -- with a maximum of $50,000 -- as a loan. You can usually get these at a very low interest rate, and what's even better is that you pay the loan and the interest back to your own 401(k) account.
If you want to pay off your debts and you can afford to pay back the loan over a five-year period (with money taken from your paycheck every two weeks, or however often you get paid), you might want to consider it.
I'm no financial advisor, but I do know that the money you lose in an early 401(k) withdrawal is substantial. You'll pay income taxes on the withdrawal (at your current tax rate), plus an early withdrawal penalty of 10% (I think).
Sorry for the late reply. Thanks for the tip, I plan to look into it before we make the decision. Even though I am the one pressing to get out of the market, MrMOguy has some good points to stay in, I guess I am taking the “it's going to go to heck in a hand basket” approach these days..
Thanks Again!!
MOgirl