The crushing weight of student loan debt often leaves borrowers exploring unconventional solutions. One such option, fraught with both potential benefits and significant drawbacks, is using funds from a 401(k) retirement plan to accelerate repayment. This decision requires careful consideration of long-term financial implications, balancing the immediate relief of debt reduction against the potential sacrifice of future retirement security. This comprehensive guide delves into the complexities of this choice, providing the information needed to make an informed decision. We will examine the tax penalties, potential loss of investment growth, and the overall financial impact of withdrawing from your 401(k) early. Read More …
