Vanguard recently released its 2025 report on how America saves. It revealed a record 4.8% of 401(k) holders took a hardship ...

So if you withdraw $10,000 from your 401(k) account as a hardship withdrawal, your tax burden may increase by up to $2,200. Taking money out of your 401(k) early can cost you more than you think.

A 401(k) hardship withdrawal can provide you with cash when you’re in a bind. Just keep in mind that you still owe income taxes on any distribution—and if you withdraw money from your 401(k) ...

Hardship withdrawals from 401(k)s reach ‘concerning’ all-time high, Vanguard says Inflation is taking its toll on people’s finances Last Updated: Dec. 3, 2022 at 3:35 p.m. ET First Published ...

Hardship withdrawals may limit your ability to make contributions to your 401(k) for six months, impacting your long-term ...

Yes, like other 401(k) distributions, a hardship withdrawal is taxable, assuming it’s a pretax 401(k), not a Roth 401(k). Withdrawals will always be taxed at your ordinary income tax rate.

Life throws a lot of curveballs. When an unexpected job loss, medical emergency, or other life event leaves you short of funds, you may be tempted to take a hardship withdrawal from your 401(k ...

The IRS permits 401(k) hardship withdrawals only for “immediate and heavy” financial needs. According to the IRS, the withdrawals that qualify include: Health care expenses for you, your ...

A 401(k) hardship withdrawal is a penalty-free way to withdraw funds from your 401(k) before age 59½ in the event of "immediate and heavy financial need," as stated by the IRS.

The third-quarter analysis also found that 2.3 percent of workers took a hardship withdrawal from their 401(k), up from 1.8 percent for the same period in 2022.

Hardship withdrawals are a kind of financial lifeline, allowing workers to tap their 401(k)s for money if, according to the IRS, they have "an immediate and heavy financial need." ...