<prompt> Human: Ive seen people on this sub advocate for it, lets say in the case of a medical procedure or to pay off high interest CC debt. Why is that a good idea? In every state of the US your 401k is protected from bankruptcy. The smart thing to do would be to just throw it on a credit card and declare bankruptcy if its big enough lets say 100k. Remember guys, no one can touch your 401k. Never dip into protected assets  <response>: No, personally I do not think there is ever a good reason to dip into your 401K. Its there for your retirement future. Dont risk your retirement for a screw up debt. Theres always another way. Typically, you just have to tighten the budget or actually start a budget. A zero-based budget will really show you how much money youre wasting and help you live within your means. 