<prompt> Human: So Im a 23 year old guy that recently moved out on his own. Ive been having a hard time being able to save money due to high expenses. I was curious if it would be foolish to cash out my 401k in order to pay off some debts in order to be able to save more money. As of right now I work full time and make about 80-90k a year. I have about 15k in my 401k. I have about 4500 in credit card debt from emergencies that Ive had to deal with. Also I have about 12500 in school loans. Right now I contribute 3 to my 401k and my employer contributes 2, if I were to clear some of my debts I would be able to contribute a higher percentage and save more money each month. Expenses Rent 1525Electric 50Gas 50Car 432Car Insurance 135Gas 150 Food 700-1000 I tend to eat out a lot due to me working long hours, 10-12 hours a daySchool loan 195Credit card 300 I pay extra 200-300 miscellaneous expenses  <response>: No. The tax penalty will negate any benefit from this. In addition, your 401k is protected from most debtors. If you lose a lawsuit or declare bankruptcy, your 401k is untouchable, so paying off debt you can get rid of in bankruptcy may be a bad idea in many cases.What you can do:Take a 401k LOAN if available, for 4500. Pay off your credit card. That is a worthwhile move. You are essentially refinancing expensive debt into cheap debt.But, absolutely do not take a withdraw to do anything. 