In 2024, hardship withdrawals from 401(k) plans rose to 4.8% of participants, showing an increase from 3.6% in 2023, as indicated by data from Vanguard Group Inc. This uptick highlights the growing financial strain on American workers in need of immediate cash access. Early access to 401(k) funds can incur tax penalties, urging individuals to consider it as a last resort option, advised Paul Brahim, a certified financial planner and president of the Financial Planning Association, as reported by CNBC. Withdrawals made before the age of 59½ from a traditional 401(k) are subject to income tax in addition to a 10% penalty, unless certain hardship exemptions apply. The impact of compound interest on such withdrawals... Find the complete story on Benzinga.com.