401K Financial Planning

burkmere asked:

I have gotten into some credit card debt by thinking I could use some credit (interest free that later turned into higher interest credit), time the market, and then pay off the debt…it didn’t turn out that well and instead my credit balance increased and I feel I should pay it off.

Iwill receive a public sector pension when I retire in a few years, so I’m not “all” that concerned about my deferred comp. balances at the moment, so I feel I should borrow from my 401k plan (my public sector oranization will allow me to borrow up to half my balance in my 401k from myself) and pay off my credit card debt…

I feel this would be better that withdrawing the money from my 401k ( I know I must pay tax and a penalty if I do this)….

Does my plan of borrowing from my 401k to pay off my credit card make sense, and if so, does it make more sense than just withdrawing the required amount of money from my 401k to pay off my credit card debt…??


Question posted courtesy of: Frances