Everyone knows that your retirement savings are meant to be used after you quit the workforce. But it can look awfully tempting when you're in a financial bind. You're technically free to take that money out anytime and spend it on whatever you'd like.

But that doesn't mean a withdrawal is your best move. Below, we'll look at what happens when you make an early 401(k) withdrawal, when you may want to do so, and what your alternatives are.

The government tries to discourage you from making early 401(k) withdrawals by charging a 10% early withdrawal penalty if you're under age 59 1/2 at the time. There are some exceptions for this if you're using the money for things like higher education or large medical expenses.

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Source Fool.com