I am very concerned about this. We have a 401k that my husband has invested in for over 15 years. He was planning on using it to help pay off our house. If they take it, we will lose our home. I have had a bad accident with my back and,4 surgeries later,am no longer able to work. I have just been accepted for social security disability, which makes me very nervous. I have found out that, even though I have paid into it since I was 15 years old, it may only last 3 years at best. So we don't know where I will be financially. We are also concerned about him losing his job as they have had a pretty big slow down and have changed their pay date 3 times in the last year. This indicates to me they are having a hard time making pay roll. What is the best thing we can do at this time? I heard that, if we take it out and pay it on the house, they aren't suppose to charge so much penalty and taxes. Is this true?