In 2024, you can cash out as much as $1,000 from a traditional 401(k) or IRA to cover an urgent need. And here’s a big change: You get to define what counts as an emergency.
But there are rules, here they are:
You can make one withdrawal per year.
◾ You can’t take out more than $1,000.
◾ You can’t make an emergency withdrawal that brings your account balance below $1,000.
Remember, if you withdraw from a your 401(k) prior to age 59.5, you will pay a 10% penalty.
Please think twice before taking advantage of this new rule, you only have so much time to save for your retirement.
Need to borrow from your 401(k)? Now you can decide what is an emergency.

In 2024, you can cash out as much as $1,000 from a traditional 401(k) or IRA to cover an urgent need. And here’s a big change: You get to define what counts as an emergency.
But there are rules, here they are:
You can make one withdrawal per year.
◾ You can’t take out more than $1,000.
◾ You can’t make an emergency withdrawal that brings your account balance below $1,000.
Remember, if you withdraw from a your 401(k) prior to age 59.5, you will pay a 10% penalty.
Please think twice before taking advantage of this new rule, you only have so much time to save for your retirement.

*USA Today is the source for this information 8/14/24

Disclosures:http://www.hechteffect.net/?page_id=31