11/4/2014 – Why you shouldn’t use retirement savings to pay off debt ( The Washington Post)

For many workers, years spent building up retirement savings can fall apart at what would typically be a milestone worth celebrating: the start of a new job.

The ability to cash out a retirement account comes with consequences. You’ll have to pay taxes on the money along with a 10 percent penalty for early withdrawal. Still, it’s an all-too-tempting option for some.

Rather than rolling over that retirement money into an IRA or another savings account, some people take the money and walk. And they’re more likely to do so when they have debt, a new report from the Employee Benefit Research Institute shows.

Read the full article at The Washington Post.