Hi! DH has a small amount of money in a 401k from a company he no longer works for. We are not currently contributing to it and, obviously, neither is his old employer and the money is just sitting there. We were planning on rolling it over to an IRA and then converting the IRA to a Roth IRA. But we also have a fair amount of credit card debt and I was wondering if any of you wise mamas think it would be better to roll it over and continue saving or cash out of it and pay down the credit card debt. Our credit card interest rates are higher than the interest rate on account so we are accruing more interest on our debt than we are on the money so I'm tempted to say we should cash out and pay down our debt. But I've read that you should never cash out because of the loss we'd take through taxes we'd have to pay on the money etc. etc. What do you all think?
post #1 of 10
2/1/06 at 5:38pm