Withdrawing early from your 401(k) should be a last resort. If you withdraw money from your 401(k) before retirement, you’re going to encounter some fees and penalties, not to mention impact your retirement savings. Knowing this, you should do everything in your power to reduce your debt in other ways, like negotiating with your credit companies, or taking out a loan from your 401(k). This way, you pay the money back to your retirement account without losing the money in your account.