Avoid Tapping Into Your 401(k)

Times are tough, and many people turn to their retirement savings in a time of need. If something comes up and you have an urgent need for money, your first option should be from your emergency savings. If you don't have an emergency fund, or the funds available aren't adequate, you're probably inclined to tap into that retirement account. Before you do, here are some things to consider when looking to borrow from your 401(k). Taking a loan against your retirement plan is better than making a taxable distribution, but it should still be used only after other options have been exhausted.