43-year-old woman calls Suze Orman asking if she can pull from her 401(k) that has $100k in it to pay off loans - hear what she says

The article highlights the risks associated with withdrawing from a 401(k) to pay off debt, particularly emphasizing the financial penalties for those under 59 and a half. Suze Orman warns that while the temptation to use retirement savings for immediate debt relief may seem logical, it can lead to significant long-term consequences. The case of a 43-year-old woman considering this option underscores the broader theme that addressing debt should involve careful evaluation and seeking support, rather than impulsively tapping into retirement plans.

A potentially horrendous mistake is withdrawing from a 401(k) to pay off debt, especially for those under 59 and a half, due to steep penalties and taxes.

Debt can severely impact both finances and mental health. Finding alternative solutions to manage debt without jeopardizing retirement savings is essential for long-term stability.

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