Submitted by opmeTK t3_11cu36g in personalfinance
molybend t1_jaamv4l wrote
Reply to comment by Soggy_Celebration814 in Drowning in debt and just lost my job. Need stern advice. by opmeTK
Early withdrawals on 401k accounts are subject to a ten percent penalty in most cases, so no. The flowchart says make the minimum debt payments as part of step 0, then get the 401k match (step 2), then pay off high interest debt (step 3) before going back to 401k (step 5). There are other steps, but in this case those are the relevant ones.
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