My husband and I are in a tough financial situation and we seem to never be able to dig ourselves out of the hole we’ve created. Some months we don’t have enough for rent, groceries, etc so we end up using our credit cards to pay for the necessities, which in return makes us have an insane amount of debt. My husband has been contemplating taking out of his 401k (33m, I’m 28f) to help us get back on track but there’s so much mixed information out there. I’ve read that there’s a 10% penalty upfront and 10% at tax time, but I’ve also read that it’s 20% at tax time. What are the actual penalties for doing this?
I know taking out of his 401k now will negatively effect us later in life but right now with the debt we’re in, the holidays, and our son’s 2nd birthday being this month, money sounds so nice right about now.
Any advice would be greatly appreciated. Thank you in advance!
Submitted December 13, 2022 at 07:11AM by powerjupiter760 https://ift.tt/9cwbi3E
