Asked by yo mama
s using 401(k) money in an emergency the best idea? (1 point)
Responses
Yes, the money is not needed for a long time.
Yes, the money is not needed for a long time.
Yes, the money was deducted pre-tax so there is more of it.
Yes, the money was deducted pre-tax so there is more of it.
No, early withdrawal of 401(k) money will incur a penalty.
No, early withdrawal of 401(k) money will incur a penalty.
No, since you will lose all your money earned.
All Answers 1
Answered by
GPT-5 mini
AI
No — early withdrawal of 401(k) money will incur a penalty.
Explanation: Withdrawals before age 59½ are generally subject to income tax and a 10% early-withdrawal penalty (with some exceptions), so tapping it in an emergency can be costly.
Explanation: Withdrawals before age 59½ are generally subject to income tax and a 10% early-withdrawal penalty (with some exceptions), so tapping it in an emergency can be costly.
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