401(k) Leakage Is Costing Americans Billions. Here's How You Can Avoid It.
A 401(k) is a valuable asset for building your retirement savings, but it can also cost you if you're not careful. The IRS has strict rules about when you can take money out of your account, and violating them can lead to costly penalties.
Losing money due to early withdrawals is known as 401(k) leakage. According to the most recent data from the Employee Benefit Research Institute (EBRI), it cost Americans $92.4 billion in 2015. But a lot of this is avoidable with the right strategy.
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Source Fool.com
