Emergency Cash from Your 401(k): Is It a Good Idea?

BEEM BITES

Thinking about using your 401(k) for emergency cash? Here’s what to know before making the move:

You can quickly access funds in your 401(k) for urgent financial needs. 

1.

Recent changes in legislation may waive the usual 10% early withdrawal penalty. 

2.

However, you will still owe ordinary income taxes on the amount withdrawn. 

3.

Withdrawing funds can reduce your retirement savings and potential growth. 

4.

The withdrawal should be for a qualified emergency, such as medical expenses or home repairs. 

5.

Lastly, not all 401(k) plans offer this option, so check with your plan administrator.

6.

If accessing your 401(k) feels risky, check out Beem. It offers up to $1,000 in emergency cash.

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