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hardship withdrawal
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with respect to the 401(k). before taking a hardship withdrawal, one must first deplete the ability to take any 401(k) loans available. this is a regulation. the 401(k) loan limit is the lesser of $50k, 50% your vested balance, or $50k minus the highest loan balance within the last year. here's the good news: it is not a taxable event; you can pay back over a maximum of 5 years; interest is low (usually 4.25% or so). the bad news: if you terminate employment then the loan balance must be repaid or else it becomes taxable income plus a 10% penalty. i suggest you consider eliminating the credit card debt via this option. pay back as aggressively as possible and if/when you terminate you can take the 10% penalty - it will be far less of an impact than 25k accruing approximately 25% annually.
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