Is using 401(k) money in an emergency the best idea? (1 point)

Question

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

Answer 1

No, since you will lose out on potential investment growth and compounding gains by withdrawing the money early.