So, Kelly, we just mentioned that 10% penalty on the surface. This doesn't sound like a smart move, but are there situations where an early 401k withdrawal actually does make sense. Well, thank you so much for having me on your show today.It's really great to be here. Yes, it does make sense in some cases because emergencies do happen and sometimes people just need cash and liquidity. When we look at our data as to why people are taking early withdrawals, the top two reasons are avoiding eviction as well as ...

Retirement Savings Trends - US adults are saving nearly 8% of their paycheck in employer-provided retirement plans [1] - When combined with employer matches, total retirement savings reach approximately 12%, a record high [1] - Financial analysts recommend saving 12% to 15% of salary for retirement [2] - Auto-enrollment and auto-escalation in 401k plans are driving increased savings rates [2][3] - Employers are automatically enrolling employees into 401k plans with deferrals of 4% to 6% of their salary [2] - Auto-escalation features increase contribution limits by 1% to 2% annually [3] Roth 401k Adoption - More retirement plans are offering Roth 401k options [4] - Contributions to Roth 401k are taxed upfront, but the investment growth and withdrawals in retirement are tax-free [5] Hardship Withdrawals - Hardship withdrawals from retirement plans have increased [6] - Withdrawals are concerning because they are taxed and subject to a 10% penalty if the individual is under 59 and a half years old [8] - Common reasons for hardship withdrawals include housing foreclosure, medical expenses, and making ends meet [8]