Doing the math!!??

[QUOTE=kaylee;691584]This is kind of a math problem???.I am trying to settle my 4 CC (see my other post) and I have close to 97k in debt, figure I can settle at 40-46k. I have no one to borrow from and nothing left to sell.
I can pay $1500 -2000 per month so that would take me approximately 2 years to settle assuming I can get them to wait that long. :rolleyes:As an aside does anyone have any advice on how to do that?
But my question is this: I have 40k in a 401k and I know I would take a penalty if I cashed it in.
But when you settle you also take a 1099 and it is counted as income on your taxes so does anyone know how to do the math on this? I cash in the 401k and settle then can start building that back up faster. Or I settle and let???s say 45k is on the 1099.
Which has the advantage?
Thanks to any math whiz!
Kaylee[/QUOTE]


When you cash in the 401k there's going to be withholding.
Mine was 20% that went straight to Uncle Sam.

And the 1099 follows.

Your 40k becomes 32k right out of the gate.

Is it worth it?
It was to me as all my cc's are now settled and dead.
Working on the house note.

When I burn the mortgage, it's going to be one big BBQ at my shack and everyone will be invited.

Thanks Jabba, can I come to the BBQ!

So you are saying that I cash in 40k and get 32k right out the gate, that part I get but are you saying I also have a 1099 on that money too?

Or did you mean the 1099 from settling?

I am a smart person but not very good with math, sorry!

thanks, Kaylee