is using 401(k) money in an emergency the best idea? (1 point)\nyes, the money is not needed for a long…

is using 401(k) money in an emergency the best idea? (1 point)\nyes, the money is not needed for a long time.\nyes, the money was deducted pre - tax so there is more of it.\nno, early withdrawal of 401(k) money will incur a penalty.\nno, since you will lose all your money earned.

is using 401(k) money in an emergency the best idea? (1 point)\nyes, the money is not needed for a long time.\nyes, the money was deducted pre - tax so there is more of it.\nno, early withdrawal of 401(k) money will incur a penalty.\nno, since you will lose all your money earned.

Answer

Brief Explanations:

401(k) is a retirement - savings plan. Early withdrawal usually incurs a 10% penalty on top of income tax on the withdrawn amount. So using it in an emergency is not a good idea.

Answer:

No, early withdrawal of 401(k) money will incur a penalty.