Institute a Loan Program

Taking money out of your 401(k) early should be your last resort. But hey, emergencies happen to the best of us! So you should make sure that a less costly option is available to you.

Did you know that although the IRS allows 401(k) plans to offer loans, not all employers do? Talk to your employer about this option so that in the event of an emergency, you could borrow half of your vested plan balance or the lesser of $50,000.

This loan should put you back on your feet without risking major losses to your retirement plan, as long as you use it wisely.