401K Financial Planning

Jen asked:

I see all over the internet people mentioning cashing in their 401k early to pay off debt. I just tried to do that exact same thing, yet according to my representative, (who put me on hold to verify with someone else) there is not one single legal way I can cash in my 401k early without qualifying for a Hardship Withdrawal and providing proof from a very limited list of acceptable documents for them to investigate.

Which is the truth here: Have people closed out their 401k early to pay off debt, or is there no legal way to do so?


Question posted courtesy of: Rodney

CoCoN asked:

I recently become eligible to join 401K through my work for the first time. With a recession possibly looming around the corner and the Market not performing very well right now, what should I do? Should I go ahead and join and take advantage of the lower prices and shares or should I wait it out until the Market starts to perform better? Just to note I have never been a part of a 401K plan before now. Any help would be appreciated. Thanks.


Question posted courtesy of: Chris