Re: Distirbution's from 401k Plan; For Debt
If it were me, I would take out the cash from the 401k using the 72T option and pay the majority of it into the CC Debt. Then pay the mortgage off as normal. This will offset the taxes on both the 72T and your pension. Not perfect, but it does save the 20%.
Your approx 72T distribution for 5 years would be around $13,811 per year which would be about 1150 per month. I made some guesses when I did the math but it should be close.
Otherwise, I would take out only enough to pay the CC debt and keep the mortgage, maybe refi to get the payments managable.
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