Has anyone here ever withdrawn money from their 401k early? Why? Under what circumstances would you say it's appropriate to consider that as an option?

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Never in the form of a dispersement, but I've taken several 401k loans over the course of 20 years. Once to pay a significant, unexpected tax bill, a few for home improvements, bury a parent, etc.

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We took a loan from 401k (about $20k) to help buy a house because we knew we were getting that amount of money two months later. Paid it back when we got it.

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I’ve also taken out two 401k loans. I’m pretty young and didn’t have an emergency fund the first time I moved, and didn’t anticipate the cost of moving. The second time, my personal laptop crapped out and I, again, didn’t have enough in my emergency fund. I paid both loans back early and it wasn’t an issue—but shows the importance of having at least 5k saved for random expenses!

No, it would have to be a last resort for me.

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