1 in 5 workers withdrew from retirement accounts, advised against by experts due to income tax and penalties; 401(k) loans seen as last resort, per CFPs.

1 in 5 workers have withdrawn money from retirement accounts, a practice advised against by financial experts, as it leads to income tax and early withdrawal penalties. Retirement expert Anne Lester warns that the long-term consequences of this move can be painful. A 401(k) loan should be a last resort, say CFPs, due to the potential negative impact on a person's finances and future retirement planning.

March 04, 2024
3 Articles