Money Question

[LinK]

Hello Everyone I think I have bounced alot of things off you guys in the past so I will try this one. My husband is much older than I am 21 years he is retired and has a 401 K that we only go into once a year for our taxes. He has about 20,000 in the account and I was told once that if he were to die that account would become mine. But I am no where near 59 1/2 to be able to use it if something would happen so I have been thinking would it be wise for us to use some of it to pay off some large credit card debt now with no penalities.

 

[GOOFY4DONALD]

I don't have a good answer but I thought the 401K was for his/your use when he retires not passes away. And unless your DH is over 100 20K doesn't go very far.

 

[beansmom]

if he takes the money out, he will have to pay the taxes on it. You should contact the 401K administrator--they can answer your questions.

 

[wdwfan16]

Will the $20K payoff the CCs? Does he get a pension or SS? Does he have survior benefits on his pension?

$20K will not go far so I would payof the CCs and then max out your retirement funds to ensure you have a decent retirement.