As a Kiplinger reader, you’re likely someone who manages their finances thoughtfully and has been saving for retirement in a tax-advantaged plan like a 401(k). You’ve also probably heard that taking cash out of your 401(k) before you’re 59½ is generally inadvisable, given the taxes and penalties on early withdrawals.
But even the most responsible of us can face a financial emergency and have thought about tapping into savings stashed in a 401(k). Maybe you have unexpected medical bills after an accident or hurricane damage to your home. Or maybe you need funds to pursue an exciting new opportunity, like buying a home, starting a business or going back to school.
