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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.
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Based on 401(k) withdrawal rules, if you withdraw money from a traditional 401(k) before age 59½, you will face — in addition to the standard taxes — a 10% early withdrawal penalty. Why?
When am I eligible to get my 401(k) early without penal If you meet the criteria for a hardship distribution, you may be eligible to take a 401(k) distribution without penalty.
That way, your money can grow and you won't have to worry as much about an income shortfall in retirement. But you should also know that there may be a way to access your 401(k) penalty-free prior ...
A hardship withdrawal allows the owner of a 401(k) plan or a similar retirement plan — such as a 403(b) — to withdraw money from the account to meet a dire financial need.