New rules make 401(k) hardship withdrawals easier

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Abstract: Many 401(k) plans permit hardship withdrawals, and the Bipartisan Budget Act of 2018 relaxed some of the rules surrounding these withdrawals. But as this article argues, even if it’s easier to access retirement savings in a pinch, doing so comes at a steep price. Besides taxes and penalties, account holders can lose the benefits of tax-deferred growth.