Monthly Archives: December 2019

Taking money out of your employer’s 401(k) plan while you’re still on its payroll is about to get easier. The federal government’s new rules about “economic hardship” withdrawals from retirement savings plans like 401(k) go into effect  in January 2020. Pulling money out of your retirement savings before retirement is, generally speaking, a bad idea. That’s why personal finance experts, including me, urge cautions before using the new rules to make an early withdrawal. Americans, on average, are under saved for retirement. The idea of premature extracting money from a retirement plan in an era when people are under saved doesn’t seem great.

Reason for an early 401(k) withdrawal:

• Medical care expenses for the employee, the employee’s spouse, dependents or beneficiary
• Costs directly related to the purchase of an employee’s principal residence (excluding mortgage payments)
• Tuition, related educational fees and room and board expenses
• Payments necessary to prevent the eviction of the employee’s
• Funeral expenses for the employee, the employee’s spouse, children, dependents
• Certain expenses to repair damage to the employee’s principal residence
• * 401(k) early withdrawals vs. loans: loan will not require a tax penalty and can be used for the above mentioned items

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Seniors flying Southwest Airlines will soon have to pay full price for their airfares. The airline plans to discontinue its senior citizen discount on Dec. 11, according to an announcement on its website. Senior passengers will still be able to take advantage of Southwest’s other perks like no-change fees and two free checked bags. Refunds are still also available with the airline’s “Anytime” and “Business Select” fares. Just because Southwest is sunsetting its senior discount fares doesn’t mean seniors are now relegated to paying full price. Other major carriers still offer discounts to flyers aged 50 and up.

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