It is a oweful and boring idea.you need to find a new job that gives you enough cash to live a comfortable life.

You should consult financial advisor, and they should be able to help you making decision to cash it or not.

You should only use retirement funds in an extreme emergency. This, IMO, does not constitute one. I used to use my IRA as an emergency fund and regret it severly. You need to prioritize saving up an EF for these kind of situations. For now, manage best you can without robbing your retirement. Good luck.

I would'nt cash the fund in. This is not a good idea because the 401K is the financial backbone of most people's retirement fund. If you need to take it out, you may see severe penalties off of what you have earned on the fund.

I would also suggest talking to a financial advisor to allow him to hear your full financial situation. Good Luck!

Cashing in your 401k will cost you a 10% penalty if you are under age 59.5 IN ADDITION to paying ordinary income tax on the distribution.

If you are in, for example, a 28% tax bracket, the withdrawal will cost you 38%. THAT would be an absolute waste of money.

Scarlet, what would you do if you didn't have the 401k?

You'd have to make another plan....

So.... make another plan.

Because that's what you'd have to do anyway after you destroy your nest egg and the next financial challenge manifests itself.

__________________
Gary Spicuzza, *SAFE
Copyright 1956.
No Rights Reserved.
*Self Appointed Financial Expert

Thanks everyone....

You should never cash in your 401k unless it is your last desperate resort. Frankly the choice should be bankruptcy or cash in the 401k and not the situation you describe. The fees and penalties are a killer and you'll never pay back the funds.

It has been a month since you asked the question...I was just curious as to what you did during the move? Did you end up cashing the 401k?