Quote:
Originally posted by BonesCPA
What Gar was suggesting is that if you took a distribution from the 401(k), then you would not only be paying the taxes, but also a 10% penalty tax. The penalty disappears if you use it for first time home buying.
However, if you took a loan from your 401(k), which it appears you did since you are having deductions taken out of your pay. then the tax hit won't happen.
As far as the original issue, I always say pay off the highest rate first. You knock off the highest interest rates, and then you have more to pay off the lower interest rate debt later on.
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Sorry, I was reading into it you took a distribution. My bad.
Too much heat over here in my neck of the woods.....