Use the Stimulus Check

To help individuals cope with the adverse effects of the coronavirus pandemic, the IRS began paying stimulus checks of up to $1,200 per individual in April 2020, via checks or direct bank deposits. If you’re married, this stimulus relief translated into $2,400, or more if you have eligible children. Tax-free.

The government is pushing for a second round of stimulus money. If you’re eligible, you can use this cash infusion to pay off your bills or take care of immediate emergencies instead of using any money from your 401(k) or other retirement accounts.

See also 10 Hidden Drawbacks of 401(k)s That Will Leave You Speechless.