While federal taxes apply uniformly, the way states tax 401(k) withdrawals can vary widely. Some states fully tax 401(k) distributions, while others provide deductions or exclude retirement income ...

During challenging financial times, people often consider withdrawing money from their 401(k) plans. Balances in 401(k) plans are deceiving. They are not like checking accounts where what you see is ...

When times are tough and household budgets are under severe strain, taking cash out of your 401(k) plan can provide some relief. However, it’s best to be cautious, as there are specific rules related ...

Usually, taking an early withdrawal from your 401 (k) or IRA means paying an extra 10% penalty on top of income taxes. There ...

Early 401(k) withdrawals are those you make under age 59 1/2 without a qualifying reason. You'll pay a 10% early withdrawal penalty on top of ordinary income taxes. Consider early 401(k) withdrawals ...

Jordyn joined Investopedia in February 2025. She was previously a freelance writer covering lifestyle, entertainment, politics in the Midwest, and more. Investopedia/Julie Bang A new Vanguard study ...

Vanguard recently released its "How America Saves 2025" report. The data reveals that 401(k) hardship withdrawals have been on the rise since 2020. It's best to avoid withdrawing money early from your ...

The 4% Rule is arguably the most famous strategy for making sure your retirement income lasts long. Developed in the 1990s, it offers an evidence-based answer to most retirees’ question: “How much can ...

A 401 (k) is a great option because it largely operates behind the scenes and allows people to save and invest for retirement ...