With more opportunities to access 401(k) funds penalty-free, workers are increasingly dipping into their retirement savings. But those withdrawals could jeopardize their retirement security.
A recent T. Rowe Price study of more than 2 million participants in workplace retirement plans found a notable rise in the number of workers who are taking hardship withdrawals. Plan providers may permit these withdrawals for an immediate, significant financial need, such as unreimbursed medical expenses, costs related to the purchase of a principal residence (excluding mortgage payments), tuition payments, or funeral costs.
