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Unread 2017-01-30, 05:44 PM   #30
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Originally Posted by Scooby24 View Post
I'm on track for 3-4 million (high side) between both the wife's and I's 401k at retirement but only have about 200k today, with contributions hitting what we owe on our mortgage in probably 2-3 years.... so I have no idea where that number would move if we effectively started over, but were completely maxing out what we could contribute whereas today I think I'm only putting 12% towards it on my side, and I think 8% on the wife's side. Obviously taxes for early payout would kill us and it may actually be a timeline closer to 5-6 years before we could actually have the funds to pay the mortgage down to zero after taxes and penalties.

I need to post on reddit and let the financial gurus tell me what would be smarter.
We have over half a million in our accounts, and I briefly entertained the idea of cashing out to a no debt situation, and while the idea of being debt free sounds awesome, the math doesn't work. You have to pay your 10% penalty, then you'll pay income tax on top of that, which on top of your household income puts that at anywhere between 33%-38% (state + fed). All in, you'll see about 52-57% the money you try to withdraw from your retirement account. That's money that could be growing.
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