I was recently laid off. I have a 401K to which no new money will be added. But, according to my 401K administrator, I can take money from the account without penalty because of my age, although I would have to pay taxes. My question is, should I take money (a fairly small percentage of the total) from the 401K to pay off my debts (signature loan, grad school loan, credit card)? I will, of course, have to get a new job -- I can't possibly retire -- so a new pension/401K will be in my future. I'd love to not see most of my severance money going to service the debt and to have more time to look for meaningful work. Any suggestions? Thank you.