Even at 23 saving for retirement is really more important than paying off the credit card debt. Believe me there are always things that will make you want to raid your 401k. e.g. car breaks down, marriage, kids, mortgage, unemployment, illness, weddings …So you need to be strong to resist the temptation or you will regret it when you reach retirement.

Hopefully, you can pay off your credit card with regular earnings. If you feel that you might not be able to pay off your credit card debt I would leave the money in your 401k. I believe creditors can’t touch that money in a 401k but may be able to touch it in an IRA. If that is not a worry then I suggest rolling the 401k to Vanguard. If you call their 800 number they can take you through the process. Your former company may have a special form so you may need to contact them first.

You DON’T want to get the money sent to you in your name or the former company will have to deduct 20% withholding. You want to have the rollover go directly from the former company to Vanguard. (the check can also be SENT to you but PAYABLE to Vanguard for you benefit (It may say "Vanguard for the benefit of (your name)). .

I would suggest putting it all in the Vanguard Star Fund which invests in Large, small and international stocks and bonds. Well diversified and low cost.

$2200 at 23 years of age is a good start. Keep it up

Good Luck

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