Two emergency options for retirement plan participants

Description

Abstract: Qualified plans such as 401(k)s are meant to help individuals save for retirement in a tax-advantaged manner. But, under dire circumstances, it may become necessary to tap into the nest egg early. This article explains that while doing so may result in additional income tax liability and penalties, the SECURE 2.0 Act, which was signed into law in late 2022, provides not one, but two options for people who find themselves in an emergency situation.