Taking from your retirement
Many Americans are struggling to pay the bills each month. And experts say more and more people are dipping into their 401 (k) plans.
Studies show more than one in four Americans are raiding their 401 (k) plans to pay credit card bills and college tuition. But experts say it's not a good idea.
"There are tax implications. They not only have to pay taxes on it but if you're not 59 1/2 you do have a premature distribution penalty" says Financial Adviser Jammie Serrano says there are other options.
She advises setting up a fund now before you need the cash later. A study from financial advisory firm HelloWallet says people in their 40s are more likely to take from their 401(k) plans.