The majority of Americans wouldn't be able to cover an unforeseen $1,000 expense with money from their own savings, according to Bankrate's 2024 emergency savings report.
Generally, you'll face a 10% penalty for withdrawing money from retirement savings before you reach the age of 59½.
For one, you can only make one $1,000 withdrawal per year.
But if you don't replace that amount in your retirement account in full or through regular deposits within three years, you won't be able to make another $1,000 withdrawal during that repayment period.
And you'll need to self-certify in writing with your retirement plan administrator that you need the money for an emergency.
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