401(k) Hardship Withdrawals Just Reached an All-Time High
The purpose of saving for retirement in an IRA or 401(k) plan is to have money during your senior years. Many people who retire leave the workforce for good and opt not to hold down a part-time job. In that scenario, you'll need income to supplement your Social Security benefits.
That's a big reason the IRS tries to incentivize workers to sock money away in an IRA or 401(k) plan via tax breaks. It wants people saving for retirement, and just as importantly, it wants savers to leave their nest eggs alone until their senior years arrive.
But new data from Vanguard reveals that a growing number of savers are tapping their retirement savings prematurely. And that means they risk falling short on money later in life.
Source Fool.com
