When can I take a hardship withdrawal from my 401(k)?

A hardship withdrawal lets you pull money out for an immediate and heavy financial need, but only if your plan permits it and you qualify. IRS-recognized reasons include medical bills, costs to buy a primary home, tuition, payments to prevent eviction or foreclosure, funeral expenses, and certain disaster or repair costs. Unlike a loan, you don't pay it back — but that's the problem: the amount is taxed as ordinary income, hit with a 10% penalty if you're under 59½, and permanently gone from your retirement savings. You generally must take only what's needed to cover the hardship. Because the long-term cost is steep, exhaust an emergency fund, lower-rate borrowing, and other resources first. Building cash reserves now prevents this scenario — start at wealthserene.com/tools/emergency-fund.