A 401K plan is one of the best ways to save money for retirement. Since your employer matches your contribution, the savings can really add up over time. This can be a large part of your retirement plan if used correctly.

There are times though that you would need to take money out of the 401K early. One reason might be that you or a child are getting married and you need to pay for the wedding. As this can be a great expense, the 401K might be the only option.

Another reason might be to buy a new house. This is an investment also.  Possibly the 401K money could be better used by investing in a house. The sale of the home later could yield a great return depending on property values at the time of the sale.This option could also cause you to lose money. Property values could drop and the house could be worth less than what was paid for it.

The 401K money might also be used to start a new business. This could be a wise investment that will give a return for a long period of time. It could take a long time to see a return on this investment. New businesses sometimes lose more money that they make in the first few years. Then the business could fail altogether and you would lose your investment.

You might need to use the 401k to cover medical bills. This won’t give any return, but it could help to dig the family out of a deep hole of medical bills. This is an option when there is no other option.

You might also use the 401K to bail out a failing business. Although, you might be better off to cut your losses and close the busine4ss instead of using your retirement to try to save it.

You might decide to use the 401K to pay for a child’s college. This won’t give you a return but it will be of benefit to your child.

For whatever reason you may take money out of your 401k, you don’t want to take it all out. Meeting with a financial adviser before doing anything with a 401K is a good idea. They can tell you the affect of a withdrawal, and also tell you how much you can take out without hurting your retirement. They may also have other suggestion for things you can do with your 401K to increase the yield for your retirement.