What Are the Pros and Cons of a 401k Early Withdrawal?
A 401K plan is a type of retirement savings plan a person may use to prepare for his needs once he is ready to stop working. Sometimes, however, a person may need to withdraw money from a 401K plan before he has reached retirement age. In such a case, however, he may face penalties for 401K early withdrawal. The main pro of taking a 401K early withdrawal may be gaining access to a lump sum of money in a time of need. The cons, however, may sometimes outweigh this pro, as taking an early withdrawal may translate into hefty financial penalties and less money available when the time comes to retire.
