More People Tapping 401(k)s to Pay Bills - Retirement Planning ...

Americans are taking more than $70 billion a year out of their 401(k)s before retirement, and using their retirement funds to get caught up on bills, according to a study by a financial advisory group called HelloWallet. It's sad but true that when people don't know where to turn in a financial emergency, a 401(k) can seem like a viable option.

There are arguments for taking a 401(k) loan instead of pulling money out, if you must. But if you can help it, it's best to stay away from the 401(k). Not just because you are going to need that money even more in those years when you may have fewer opportunities to earn income, but also because you are going to end up paying some sort of penalty. If you withdraw the money early, the taxes and penalties combined can be shockingly steep, causing even more financial difficulties if you are not prepared. You are also going to lose precious saving and investing years.

I will stop harping. Just consider your options carefully before withdrawing money from a 401(k)?or IRA.

Source: http://retireplan.about.com/b/2013/01/19/more-people-tapping-401ks-to-pay-bills.htm

march madness scores doonesbury padma lakshmi daughtry lakers trade ann arbor news ides of march