Hey @DRob5182. Off the top of my head since I don't have more specific details as to your situation and where you're at with your planning, I'm a firm believer in not taking any money out of retirement accounts prematurely. The first thing is to analyze why you got into the $80K of CC and loan debt in the first place. My concern is if you haven't changed anything that got you into this debt in the first place, I'm afraid it will continue after paying it off with your retirement account money and later would have to tap into your retirement accounts again. So first have to see if you've changed up your lifestyle and started to cut expenses and down size on what you need to live on. A lot of sacrifice would have to be in that area.
The next is can you use that extra money to start paying off on the debt. Are there any other streams of income you can use your consulting skills to tap into to generate extra income? If you have exhausted all ways to see if you can stop the spending and also increase creating other streams of income and can start to pay down the debt, the next step is to see which ones are the better ones to tackle first.
If you've already done all of this and feel like you absolutely need to tap into your retirement account, you would need at least $112K to end up with the $80K needed after the tax hit and also not sure about any penalties for early withdrawal from that account if any. If I'm faced with this decision I would still look at my potential for earning more in the future and if I really needed to do this how much do I really need to take out of the account and how much should I really pay down and can I keep investing the extra money I would have been using to pay the debt into recovering my retirement investments according to the goals and plans I had set for investing and retirement. At your age and considering health and lifestyle, regardless of which direction you go, can you still get to your investing and retirement goals. So run those numbers as best you can. I dont know if anyone else has any more detailed experiences to say one way or the other on the early withdrawal from the investing accounts, but I think either way depends on running those numbers and seeing how you can project getting back on track and how long that could take. Not sure if I helped any or told you stuff you dont already know, but sometimes just helps to talk it out till you can make the decision and stick with the plan to get you back to where you want to be. I don't think you're in a bad situation, but whichever path you finally choose, I think you'll be ok to work and invest and be able to reach your financial goals.