retirement

Retirement raiders: More tap 401(k) early

An emergency situation
Next
4 of 7
Back
An emergency situation

For some readers, the best-laid retirement plans can get tripped up by unpredictable expenses, like health care spending. Demetrius from Chicago says he "finally broke down and made an early withdrawal from my 401(k) to pay some credit card debts due to medical bills" and to assist with his mortgage.

Medical bills aren't the only malady that can afflict retirement accounts. When her car's transmission failed, a reader named Brenda, who lives in the Sacramento, Calif., area, had to abruptly take out a 401(k) loan.

"It was a have-to thing," she says. "It was going to cost me more than the car was worth to get it fixed."

She sees it as having a positive outcome. "This way, I am paying myself back (at) a lower interest rate, and the payment comes right out of my paycheck," she says.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
MORTGAGE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed 4.11%  0.06 4.17%
15 year fixed 3.22%  0.04 3.26%
5/1 ARM 3.46%  0.13 3.33%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.31%  0.02 4.29%
50K FICO-based HELOC 4.06%  0.02 4.04%
100K FICO-based HELOC 3.91%  0.02 3.89%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.79% --0.00 2.79%
48 month used car loan 2.99% --0.00 2.99%
60 month new car loan 3.23%  0.01 3.24%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.97%  0.00 0.97%
2 Year CD 1.18%  0.02 1.16%
5 Year CD 1.81%  0.10 1.71%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.75% --0.00 15.75%
Cash Back Cards 16.45% --0.00 16.45%
Low Interest Cards 10.96% --0.00 10.96%
 
Next
advertisement
CD & INVESTING NEWSLETTER

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

Blog

Jennie Phipps

Medicare: Pricey isn’t always better

On average, Medicare Advantage and Part D prescription drug plan prices aren't going up much this year. Make sure yours doesn't buck the trend.  ... Read more

advertisement
Partner Center
advertisement

Connect with us