A New Rule Lets You Tap Your 401(k) Early Penalty-Free. But Don't Get Too Excited About It.

There's a reason it makes sense to save for retirement in a 401(k) if you have access to one. Not only do these retirement plans make it easy to stay on track with your savings (since they're funded from your paychecks directly), but many 401(k)s come with a workplace match. But there's a big drawback to using a 401(k) to save for retirement. If you take a distribution before turning 59 1/2, you'll generally be subject to an early withdrawal penalty of 10%. So if you're 45 and tap your traditional 401(k) ...