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Before you decide to take money out of your 401(k) plan, consider the following alternatives: Temporarily stop contributing to your employer’s 401(k) to free up some additional cash each pay period.
The federal Employee Retirement Income Security Act of 1974 — or ERISA — prevents creditors from making claims against funds in retirement accounts like 401(k)s, protecting the money you paid ...
The same leniency doesn’t apply to 401(k)s. If you pull money before age 59½ from your 401(k), with a few exceptions, you’ll be assessed a 10 percent early-withdrawal penalty on the amount ...
Taking money out of a 401(k) for a down payment can be trickier. “When the 401(k) has both a loan provision and hardship withdrawal provision, the participant must first use the loan provision ...
People love 401(k) plans because they're simple, contributions are automatic and, in many cases, they offer free money in the form of matching employer funds. Unlike Roth IRAs and annuities ...
The average return rate for a 401(k) is between 5% and 8%, which means you could lose out on an additional $490.83 and $1,219.64 in growth over the next 10 years for each withdrawal. Plus, if you ...
If you want to compare your saving options, check out the Moneywise best high-yield savings accounts of 2025 that can earn you more than the national average of 0.4% APY on savings accounts. 2 ...
Overall, Fidelity suggests you withdraw no more than 4% to 5% from your savings in the first year of retirement, and increase the dollar amount annually by the inflation rate. If you can do that ...