<prompt> Human: Hi PF, I had to cash out my 401k from my previous employer because it had just shy of 1k. I know I have 60 days to roll over the funds into a Roth IRA. However, I have managed to pay down 3300 in student loans over the last month and a half with a new contract job. I only have 1600 left of student loan debt until I am debt free. The money from the 401k would put a big dent in that even after taxes and penalty withheld. Is it better to use the money to pay the student loan or to add some more money and open a Roth IRA?  <response>: It is rarely a good idea to pay a 10 fee when you dont have to. Roll it over to an IRA then contribute some to meet the minimum for investing in the funds you choose. 