3 Times It Might Actually Be OK to Pull Money From Your 401(k) Before Retirement
Tapping your 401(k) early is widely regarded as a cardinal sin in investing. When you take a distribution before age 59 1/2 (or 55 if you've left your job), you'll typically owe a 10% penalty on top of income taxes for the amount you withdraw. Your money also misses out on time in the market, the most valuable force you have in making your money grow.
Ideally, you'd have emergency savings to draw from should the unexpected occur, or you'd be able to turn to a low-interest credit card or loan. But sometimes your 401(k) may be the only source of funds you can turn to. Provided that you've explored every alternative, here are three times when an early 401(k) withdrawal could make sense.
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Source Fool.com
