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If you are stressed about having to pay the 10% early withdraw penalty, don’t freak out just yet. If you have been deemed to be disabled either buy an insurance company or Social Security, then you are entitled to withdraw from your 401k penalty free.  You’ll have to provide a disability letter to your 401k custodian to verify your status and avoid the penalty.
And if you think that I had to tap my 401k to pay for my son’s emergency room visit, get your head out of the gutter.
If you have already done a 401(k) rollover into a traditional IRA, you have already missed this opportunity.
What is the rule 72(t)?  The rule of 72(t) states that withdrawals from your 401k have to be “substantially equal periodic payments.
As you can see, there are ways to tap your 401k penalty free.  Just make sure you follow the rules. Will your employer allow you to take a loan against the plan that you can use for the down payment? How withdraw 401k ira payment, How to withdraw from your 401k or ira for the down payment on a house.
Use rule 72() withdraw money penalty free , Rule 72(t) allows you to withdraw money from your ira penalty free to supplement your income if you are out of a job or in early retirement.. Retire early: withdraw money ira age, With sharp rise stock market 20 years, folk' iras grown, exploded imagination . You are allowed to access a portion of your account balance under the 401k hardship early withdrawal rule when you can document the hardship according to the IRS 401k rules.If there is truly a hardship, you will be able to access the total of the amounts that were deducted from your pay.
Our opinion is that only the most dire hardship imaginable is enough justification for cashing in any 401k.
One situation covered as a hardship early withdrawal is the purchase of your primary residence when your 401k money is the only source of funds available to make it work.

Cashing in your 401k after you retire is possible, but it may not be a good idea to cash it in all at once. Our opinion is that it depends on your tax situation, the size of the 401k, and the context of this account with the rest of your financial situation. I retired at age 55 and take a "retirement paycheck" from one of my 401k accounts, but I had a smaller one that I rolled over to an IRA.
You must use one of the three methods that the IRS has determined and then take your payment on a set schedule for a specific time period.
Even if you really need some extra cash or you have an extra 401k from an old job, cashing in a retirement savings account is not a good idea.For this discussion, cashing it in means making an early withdrawal of 401k money to use for something other than retirement expenses or retirement savings. A couple key things to note on doing this is that it must be from the 401(k), 457 or 403(b), to avoid the 10% penalty. He developed these ten rules for Smith College's Women & Financial Independence Program. This actually happened to my father in law as his company went through a buyout and he was offered an early retirement package at the age off 55.  We ended up taking a distribution from his 401k to have some cash on hand and then rolled the rest into his IRA. At a 6% real return, saving $1 at age 21 for retirement is about the save as saving $6 at age 52 for retirement. He is the author of Singularity Rising, and the creator of a series of game theory YouTube videos. Consequently, you can greatly diminish the burden of providing for your retirement if you start saving at an early age. Diversification, however, provides investors with a free lunch and allows you to reduce your risk without sacrificing average returns. Not investing through tax-preferred vehicles is the equivalent of voluntarily paying higher taxes. The world probably won't end with your death, so you have a moral obligation to provide for those you might unexpectedly leave behind.

Consequently, a full-time parent who doesn't work still needs life insurance so his or her family could purchase child rearing services if (s)he dies. If you become disabled you might impose a greater financial burden on your family than if you die. If no one depends on your income or services you probably don't need life insurance but you still need disability insurance to replace the income an accident could permanently deprive you of.
If possible, defer payments of student loans and use the freed funds to reduce your credit card balance.
If you can't payoff your credit card debt you should negotiate with your company to get a lower rate or move your debt to a card that will give you a lower rate.
The credit card industry is extremely competitive and their most valuable customers are those who keep large balances and only slowly pay off their debts. Remember that the deductibility of mortgage interest imparts massive tax benefits to home ownership.
While these benefits are difficult to justify on public policy grounds, only the financially foolish ignore the tax code. Women, on average, live about five years longer than men; consequently they need to save more for retirement.
For example, assume a married couple stops earning income when the husband is 65 and the wife 61. If the husband lives to 74 and the wife to 79 than the husband will be retired for 9 years while the wife will live in retirement for 18 years.

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