Episode Details
Back to Episodes
Should You Take a Hardship Withdrawal? by Cynthia Meyer with Financial Finesse on Tax Advice
Description
Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com.
Episode 3255:
Cynthia Meyer explains why tapping into your 401(k) or 403(b) through a hardship withdrawal should be a last resort, outlining the steep tax penalties, loss of long-term growth, and strict IRS rules that apply. She offers a series of practical questions to weigh alternatives, like selling assets, using a Roth IRA, or taking a retirement plan loan, before sacrificing retirement savings. The advice encourages a disciplined, future-focused approach to financial emergencies while still addressing urgent needs responsibly.
Read along with the original article(s) here: https://www.financialfinesse.com/2017/03/27/should-you-take-a-hardship-withdrawal/
Quotes to ponder:
"Just because you could withdraw funds doesn’t mean that you should do it."
"A hardship withdrawal is meant for a true emergency."
"Think of it as a tax I’ve paid to my future self."
Learn more about your ad choices. Visit megaphone.fm/adchoices