Karen DeMasters of Financial Advisor magazine quotes wealth advisor, Ben Barzideh, in an article about people taking funds from a 401(k) plan to pay current expenses. While advisors almost always suggest against taking a 401(k) loan, investors sometimes have to in extreme cases and when other financial options have been exhausted. Offering a solution to avoid tapping into a 401(k), Barzideh suggests setting up an emergency fund before putting money aside for retirement. That way, the emergency fund can be used before a withdrawal from a 401(k) plan has to be made.
