Should I nip money out of my retirement account?

[Deja Q]

Bankruptcy is not an option.

I can either attempt to stay at my job (which is showing signs of not being around in about a year) and I need to be in it for about year or 14 months to get everything paid in full.

or

nip a little from my retirement account. (about 50% of what I've put into it over the last 10 years at my job.)

* The money would be needed now.
* Chances are I will not live to see 65 (my own health right now suggests I'll be very lucky to reach 35, if not 34...)
* I do not want to pay interest payments to those sharks any more.
* I do not want my credit rating destroyed, if at all possible. (I'm doing better than before, but now I know the direction your society is taking I must reorganize and follow suit. As it stands, I am too far behind and I've worked for far too long to do the right thing. I still rarely think that suicide and ditching the massive amount I had owed would have been the better thing to do; but given my struggle, it'd be sad to be stuck in a bind at this point. I don't like the idea of "all for nothing". Not after me trying to do the right things to a bunch of people who wouldn't be right if Jesus Himself took a dump on them...

[DS1]

1. Don't nip it, yank it all out

If you're going to go legs up before 70, why save anything?

Pull it all, select the "Do not withhold taxes" option, depart country.

[mcscajun]

2. Two ways to go...straight rip and "hardship withdrawal"

Either way, you'll pay standard income taxes on any withdrawal. But if you qualify for the hardship withdrawal, then you won't see 10% off the top just fly into Uncle Sam's waiting pockets.

Financial hardship withdrawals are allowed for the following reasons:

* to buy a primary residence (the reason Quaid took his money, and the most common reason folks take hardship withdrawals according to the Investment Company Institute)
* to prevent foreclosure or eviction from your home
* to pay college tuition for yourself or a dependent, provided the tuition is due within the next 12 months
* to pay unreimbursed medical expenses for you or your dependents

You may qualify to take a penalty-free withdrawal if you meet one of the following exceptions:

* You become totally disabled.
* You are in debt for medical expenses that exceed 7.5 percent of your adjusted gross income.
* You are required by court order to give the money to your divorced spouse, a child, or a dependent.
* You are separated from service (through permanent layoff, termination, quitting or taking early retirement) in the year you turn 55, or later.
* You are separated from service and you have set up a payment schedule to withdraw money in substantially equal amounts over the course of your life expectancy. (Once you begin taking this kind of distribution you are required to continue for five years or until you reach age 59 1/2, whichever is longer.)

Full details: http://www.401khelpcenter.com/mpower/feature_121902.html

[Deja Q]

3. Fascinating... but they need to include other issues if they're going to

change the bankruptcy laws. It's only fair and just.

[mcscajun]

4. I'm not holding my breath for "fair and just" out of *this* lot.

I'm just passing on the way things are.

Good luck to you whatver you decide. :)