The Lesser-Known Way to Tap Your 401(k) Before 59 1/2 Penalty-Free
Some savers can access their money sooner without a problem.
Overview
Many savers learn the hard way that using a 401(k) to build a retirement nest egg can have a major drawback -- early withdrawal penalties. Generally speaking, withdrawals from a 401(k) are penalized 10% when taken before age 59 1/2.
But thanks to a lesser-known rule, you may be able to take a penalty-free 401(k) withdrawal at a slightly younger age. And that flexibility may come in handy if you end up leaving your job in your mid-50s.
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Details
Source
Originally published at www.fool.com.
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