401k Decisions

Since I recently changed jobs, I have to make the decision as to what to do with my 401k earnings. Right now, it stands at approximately $1200. It’s not much, but it still could be what gives me a small boost up in the debt war.

If I were to request a check, they would automatically withhold 20% which would give me approximately $960 after that withholding (and possibly subject to more withholding later when I do my tax return). But, if I transfer it directly to my IRA (which I haven’t contributed to since I opened the account 7 years ago…), I would have no penalty of course.

It comes down to security now versus security for the future. That money will be worth a lot more when I retire in 40-45 years (I plan to work beyond the standard retirement age of 65 should health allow me) and contribute to some sound mind currently knowing that I am saving for my [distant] future. The interest earned on the IRA would be far greater than the interest paid on the credit card. But, flip side, there’s a lot to be said for taking it and paying off a credit card for the sake of sanity.

What would you do? It’s such a small amount that I’m struggling to decide what to do!

Quick Update!

It’s been a hectic past couple of weeks- we were packing, moving, and unpacking our new home!! Super excited, larger than our last home, the pets are enjoying it (for the most part), and we will have more space for our future family (no, not pregnant yet).

John ask for a quick update on CC2. The simple answer, John, is no, CC2 is not at zero yet. Because I get cash back, I used the credit card to pay for the movers. But, I get paycheck from both my old job and new job this week (get paid weekly with the new job, woot woot!), and I’ve barely spent any of the last paycheck, so I hope to have an affirmative answer to this by Friday! Also have a check from Ebates (just going to drop that referral link right here again) and have to deposit that. Only $20, but in this game every little bit counts.

After I get settled in, I’ll let you all know more about the move and how this changes the financial landscape and ability to pay my debts down going forward.

Hope you all have a happy week!