Tempting, isn't it?

You've earned it, so why not just use it to get your short-term finances back on track? With a recent job loss and bills piling up, we understand that it can seem like a quick fix for a wide variety of your pressing financial challenges.

Take a step back

The choice is yours, of course, but we recommend the only thing you "take" at this point is a step back. Just give yourself enough time to ask a few questions: How many years are left until you'd like to retire? Do you have any children to help through college? Did you make any plans to build or buy your dream home? What are your travel plans in retirement?

Tax implications

There are also tax implications that can shrink your retirement savings, and a 10% penalty will be assessed if you aren't yet age 59½. This is an eye-opening example of how your savings could be impacted:

 $100,000   401(k) savings
-$10,000    10% penalty
-$28,000    28% tax bracket
 $62,000    Yours to keep after taxes and penalty

With $38,000 lost right off the bat to taxes and penalty, taking your cash out might seem like an option you just can't afford.

Consider longevity

As you consider whether taking cash is a good option, remember you could spend 20 to 30 years in retirement, and you'll likely want to maintain the standard of living in retirement that you've enjoyed in your working years. If you spend it all today, what will you have tomorrow?

A local Edward Jones financial advisor is ready to help you roll your 401(k) plan assets over to an IRA to help you stay on track toward your retirement goals. Use our office locator or call 800-ED-JONES to find an office near you.

Take a
closer look

at the benefits of whether you should Roll it, Take it, Leave it or Move it with our 401(k) Options Chart.VIEW

If you're considering

cashing out your 401(k) to pay monthly bills, we have some spending, saving and borrowing options that may help you keep your retirement savings intact.VIEW