Can I Use My Money Before I Retire?
With any pension or retirement plan , the aim is always to leave the money untouched until you retire so that you can make sure you have enough funds for this part of your life. However, there is no denying that circumstances could arise that may require you to change your thought process. If you are currently thinking about taking money from your 401(k) prior to your retirement, this blog post will provide you with some useful advice on doing so. You can withdraw money, but there are penalties Typically, you will need to ensure that the funds are kept in the plan until you reach the age of 59-and-a-half-years-old. You can withdraw money before this but you will be hit with a pretty substantial penalty of 10 percent. This is on top of the regular income tax that is applied to all withdrawals. This can mean that you are sacrificing quite a large sum of money in order to make a withdrawal. However, it is worth noting that there are some exceptions. The 10 percent penalty will be