In response to:

Dave Says Don't be Dumb

BillCofIN Wrote: Nov 28, 2012 1:28 AM
You need to prevent it from being in the system prior to yesterday last week. Now is too late because Obama and goons already know whether you have or will have a dollar after taxes and they want it now!

Dear Dave,

Is it a good idea for a married couple in their early thirties, who have a lot of student loan debt, to cash out one of their 401(k)s to pay it off?

Marcy

Dear Marcy,

No way! You never cash out a 401(k) or IRA to pay off debt, unless it’s to avoid a foreclosure or bankruptcy. Let’s say you take $50,000 out of your 401(k). Do you know what happens next? They’re going to charge you a 10 percent penalty, plus your tax rate. If you make $75,000 a year, that puts you in a 25 percent...