Category Archives: 401(k)

Need money to pay bills? Raiding your 401(k) is not a good idea

When you’re short of cash, raiding your 401(k) plan may seem like a good idea. Here are two reasons why it isn’t. Penalties and taxes. If you’re not at least 59½ years old, you’ll be hit with a 10% penalty for early withdrawals except in certain limited cases, and the money you withdraw will be taxed at your regular tax… (more…)