dir="ltr"> Withdrawing from your 401(k) for emergencies may be detrimental to your savings. Not only do you have to pay taxes on the withdrawals but you’ll also be hit with a 10% penalty fee for early withdrawal.
Key Takeaways:
-
You’ll be better off if you save for an emergency in a savings account and don’t touch your 401(k) retirement savings.
-
Three to six months of income is typically recommended for an emergency fund.
-
Consider taking a 401(k) loan where the interest is paid back to your account rather than taking a penalty for an early withdrawal.
Read more here:
http://www.usatoday.com/story/money/personalfinance/2016/11/09/retirement-savings-401ks-early-withdrawal-emergency-savings/91347786/
|
