You might be tempted to borrow or withdraw money from it if you have a 401(k) plan at work and need some cash. But take into account that the objective of a 401(k) is to truly save for your retirement. Simply just Take cash from the jawhorse now, and you should risk operating away from cash during your retirement. You may face tax that is stiff and penalties for withdrawing money before age 59?. Nevertheless, if you should be dealing with an emergency that is financial for example, your kid’s expenses is nearly due along with your 401(k) is the only supply of available funds — borrowing or withdrawing cash from your 401(k) could be your only choice.
To learn if you should be permitted to borrow from your own 401(k) plan and under just exactly what circumstances, consult your plan’s administrator or read your summary plan description.