As everyone has mentioned each of us has different circumstances

Right now at your age per DR you should NOT be putting into either because you have debt. You should complete baby step #2 and then since there are no college concerns for you, you should start a 401K UP to and and including what your company matches. He then suggests a Roth IRA for the difference between what you get in matching to 15% for retirement.
The logic behind this is you will be debt free in a year or so following his plan and 1 year of a small amount into the 401K vs what you are currently paying in interest on the charge cards will wash out.
Then you only do up to what the company will match in 401K because they, not you decide where the money will be invested. The remainder you put in a Roth good growth fund and leave it alone. There you have control over what is done with your money, where in a 401K the company does.
Of course if there is a huge matching, or tax advantage then you might want to look at it differently.
Example: several years ago dh was on the cusp of two tax brackets. By him joining the company 401K program our income actually went UP $50 a pay period due to the fact the pre-tax option dropped us down to the lower bracket. So check your tax options as well.

My 401K account says that

there is no penalty if I get it paid back before April 15th. And no penalty if it is to avoid foreclosure? I was putting it into another bank account that they haven’t hit / found and then electronically posting it to the mortgage company.

The other, I’m trying to find out. It was from a lawyer – and I can’t reach a human being there to save my soul. I’ll try later today again. Trouble is, I’m at work and I need to work too!!!