The average college student graduates with ,600 in student loan debt.In total, 1.3 million graduates are saddled with debt, some with as much as ,250.If you left your employer in or after the year in which you turned 55, you may not be subject to the 10% early withdrawal penalty.There are other limited situations when the 10% early withdrawal penalty may be waived, including but not limited to, permanent disability and medical expenses greater than 7.5% of your adjusted gross income.However, leaving your money in your 401k plan affords you superior creditor protection.Federal law prohibits creditors from attaching 401k accounts, a protection not afforded by most states to IRAs.The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation.The actual effects of your financial decisions may vary significantly from these estimates - so these estimates should not be regarded as predictions, advice, or recommendations.
This information is provided for illustrative purposes only and is not intended to constitute legal, financial, or other advice.
Each of these options has advantages and disadvantages and the one that is best depends upon your individual circumstances.
You should consider features such as investment choices, fees and expenses, and services offered.
But before you drain your 401(k) account, you'll need to know if you are eligible to withdraw funds.
Then you need to figure whether the cost in taxes and reduced funds at retirement will end up worth it.