It all depends on how much is in your 401K. If it is 10,000 or less take it out. 20% will be deducted and sent to the IRS. You will owe 10% penalty which can be paid from your refund of 2009 taxes. With a Mortgage and a lower income and hopfully taxes paid from a higher salary you should not end up owing. Use the money to clear a debt if possible. If the amount will not clear a debt choose the one to pay off with the highest interest rate. If the loans are installment loans like car loans ask the lender before paying down on the loan if they will reage or reamortize the loan which will lower the payments rather than taking the prepaid balance off of the back of the loan. (reducing the number of payments rather than the amount of the payments) If it is more than 10,000 contact the plan administrator and find out the plan's guidelines for taking funds out of the account. Some plans may only let you withdraw once or twice a year. Also find out if there is a minimum balance requirement for your funds to remain in the employers fund, and if there is a roll requirement, which is you must move or rollover within 3 years of severance of employment. Hope this helps.

freedom US is a Dimocrap, that' clear.

Why do you even stilll have any money sitting in your 401k ???? do you want to be completely broke ? is that your GOAL ??? max out your credit cards and empty your 401k , the us economy is finished ... just last quarter the US GDP fell by 6.2 % !!!!!! that's the end of the world!!! if you don't know what GDP is LOOK IT UP!!!!!!!!!!!!!! http://www.youtube.com/watch?v=rANEjnsGw_A&feature=channel