<prompt> Human: So I have decided that I want to make an early withdrawal from my 401k in order to pay off some higher-interest debt yes I understand withdrawing from a retirement plan is never advisable and I have considered the penalties, taxes, and lost compound interest over time. With that said, I dont particularly qualify for a hardship withdrawal...at least not to my knowledge...and I am not 59 and a half. Are there any other options I can pursue in order to take an early withdrawal from my 401k plan. I have been working at the same employer for 8 yrs and do not plan to leave anytime soon. I am also aware of the loan option using the 401k as collateral, but this is another avenue I do not currently want to pursue. I simply want to get my pretax 401k savings, pay the penalty and taxes, and use the rest to retire some high-interest credit card and other debt. Thanks all.  <response>: I spent three years working for a 401k administration group. You have three options: Default a 401k loan -- if you dont make the payments, the money is treated like an in-service prior to 59.5 withdrawal. This does not touch your credit. It will default after 60 days and the money is yours to keep. Check your loan terms - some HR departments wont let you default. Also, defaulting a loan will usually bar you from taking any loans in the future. Qualify for a hardship - youd be surprised how many people will stop paying their mortgagerent to qualify for a Prevention of EvictionForeclosure hardship. This is bad for your credit - but it sounds like that doesnt matter to you right now. Quit your job. Bonus: Some plans allow you to take in-service withdrawals after 5 years of service. Check your Summary Plan Description available from HR to see if any special rules apply.As uspicedapple wrote: none of these ideas are wise. I second hisher recommendation to read the FAQ on budgeting. Withdrawing from your 401k to pay short-term debt is an expensive solution to a problem that wont go away until you learn to live on a budget. 