A hardship withdrawal from a 401(k) plan is used for an 'immediate and heavy financial need.'
According to Investopedia, a hardship withdrawal from a 401 plan is used for an"immediate and heavy financial need."
The spokesperson also noted that more individuals may be taking money from their 401 plans in order to purchase a home while also stating that 401 balances have increased by nearly 10 percent since the end of 2022.
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