Morgan Quinn writes: “Taking an early withdrawal from your 401(k) is not only costly in the short term, it can also jeopardize your long-term retirement goals… Because of the severe financial penalties, withdrawing money early from retirement accounts should be done only in an extreme emergency, ideally after any emergency funds and investments have been depleted.” Withdrawing money early from your retirement accounts carries heavy financial consequences, but here are 4 scenarios that’s OK to dip into 401(k):
- You become totally and permanently disabled
- You’re drowning in medical debt
- You’re getting divorced
- You’re starting a business
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