<prompt> Human: Hi folks,Im looking for a little advice. I have a small 401k of about 4400 USD still at a previous employer. Ive been in a temp position for 7 months, and just became permanent this month, so now Ive started a new 401k here. Im about to have a new baby in less than a month, and my wife is going to stay home with the kid for at least 3 years, so I will be supporting my wife and two kids total.I have about 4k in credit card debt that I would love to pay off, freeing up the payment amount each month.My question is should I roll that small 401k into my new one, or pay the penalty to cash it out and pay off this debt in order to ease my current budget?TIAEdit:. Thank you everyone for your perspectives! Im going to roll it over into my new 401k, and just budget to pay off my credit card debt.I really appreciate all the advice!  <response>: Rollover.If you cash it out, you will have extra taxable income and a 10 early distribution penalty. That wont be fun to scrape together next April. Pay your card back out of your budget. Unless the bank is going to break your knees, you dont need the tax headache of early 401k distribution. 