More Americans than ever are tapping their 401(k)s for emergency cash

A Vanguard report shows hardship withdrawals climbed to 6% last year—far above pre-pandemic levels—as financial pressures mount and rules around early withdrawals loosen.

Americans are seeking financial relief and, in some cases, are even desperate enough to go against conventional financial wisdom. A record number of Americans are turning to their retirement funds to cover emergency expenses.


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