401(k) Hardship Withdrawals Just Reached an All-Time High

401(k) Hardship Withdrawals Just Reached an All-Time High

The combination of absent aid and inflation could be a big driver of 401(k) hardship withdrawals this year. It's easy to see why savers have been more inclined to take hardship withdrawals from their retirement accounts. Although many 401(k) plans allow for hardship withdrawals, savers who take advantage of them face taxes on the money they remove, plus a very costly 10% early-withdrawal penalty.