Having a 401K as a retirment investment is very important to help with your expenses during the latter years when you are no longer receiving an income from your job. Cashing out your 401K early, before age 59 ?, is never usually encouraged as you will end up paying 40 to 50%. This would involve a penalty of 10% along with federal and stater taxes which could be about 30-40-%. This would
. ultimately end up with your suffering loss from the investment and it would be like your starting over your retirement savings. However where there is severe hardship, you may be able to escape the 10% penalties. Thismay include medical expenses and if you are permanently disabled.
