Is a 401(k) the answer to your financial troubles this year?
Kailey Hagen | The Motley Fool
You need $5,000 right now. Where do you get it? No, that’s not a hypothetical question, at least not for many Americans who have lost their jobs since the pandemic started. After trimming budgets, draining emergency funds, and borrowing whatever you can, retirement savings often start to look like piggy banks just waiting to be cracked open.
There’s something to be said for that. Your retirement savings is your money after all, so you can use it however you choose. But while the government has changed the rules surrounding 401(k) withdrawals this year, that doesn’t mean you don’t pay a price for taking one. Weigh the following pros and cons of 401(k) withdrawals to decide if it’s the right move for you.