I wanted to pose a question to this forum to get some opinions other than my own. My wife has a 403(b) through her employer with a balance just over $32k. She was working full-time, but once we started having kids she cut back her hours significantly. She is at the point where she is working maybe 1 shift a month (she is an RN). With her working so little and contributing so little to her 403, I was considering an early withdrawal on her 403 and using those funds to eliminate debt (student loans)? The balance would be more than enough to pay off all our student loan debt (Assuming 10% early withdrawal and 25% tax rate.). This way we wouldn’t have to touch the cash we currently have in savings/invested. Neither of us see her going back to work full-time or even half-time anytime soon. Paying off those loans would free up ~$300/month.
Thanks for you input
Antonio