Why you shouldn’t take money out of your 401k?

Why you shouldn’t take money out of your 401k?

There may be early withdrawal penalties Since you contribute pre-tax money to a traditional 401(k), you’ll owe income taxes on any withdrawn money. However, if you make an early withdrawal from your 401(k) — which is before the age of 59 ½ — you’ll likely be subjected to an additional 10% early distribution tax. Nov 24, 2021