While you're still working for your employer, tax laws and the specific rules for your plan may allow you to take money out of your retirement account in limited cases. But financial experts say you should do that only as a last resort. Why? Because your account balance goes down, and the money you take out stops working for you. If you take a hardship withdrawal, you cannot make contributions to the plan for at least six months, and some plans may extend this suspension for up to a year. You will owe income taxes on the taxable amount of your withdrawal or distribution, and depending on your age, you may owe a penalty at tax time.
If you don't want to tap your retirement account, you may have options that don't involve tapping into your plan.Recordkeeping and administrative services for the plan are provided by J.P. Morgan Retirement Plan Services.