How Many People Made Early 401(k) Withdrawals in 2024 — and How To Avoid the Same

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Ideally, those contributions will continue for decades, with no need to tap into the account early.

But thats not always possible.

A rising number of Americans are making early 401(k) withdrawals to deal with financial emergencies.

As Vanguard noted, this trend isnt necessarily surprising.

GOBankingRates dove into these statistics and listed several ways to avoidwithdrawing early from your 401(k) plan.

TheIRSdescribes a hardship withdrawal as one thats made because of an immediate and heavy financial need.

It is limited to the amount necessary to satisfy that financial need.

As Bankers Life noted,most healthcare organizationsare willing to offer more flexible payment arrangements.

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