401(K) WITHDRAWAL 5

Author: Mock Webware

HOW IT WORKS

A retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes are not paid until the money is withdrawn from the account.

PROS

  • Quick Access to funds

CONS

  • 10% early withdrawal penalty for those younger than 59 ½
  • Puts retirement in danger
  • Lost opportunity for tax-deferred growth


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