Your money matters, and there’s a new way to tap into your 401(k) account without paying a penalty.
There’s a rule that allows you to take $1,000 out in the event of an emergency from your 401(k) with no penalty.
You have to pay taxes on what you pull out, but you can get it all back.
“You have the opportunity to pay the money back, and if you put that money back anytime within the next three years, you get to file an amendment and get your taxes back too,” Bjorn Amundson with Quarry Hill Advisors in St. Paul said. “It may be the safer option to actually take the money from the 401(k) rather than rack up credit card debt that you can’t afford.”
Most companies now offer the emergency 401(k) withdrawal. Check with your employer to find out if you qualify.
Click here for more information.
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