Personal Finance

More Americans Made ‘Hardship Withdrawals’ From Retirement Funds in 2024, Study Finds

The study also found that the average account balance had increased to $134,000 at the end of 2023 compared with $106,000 in 2019.
More Americans Made ‘Hardship Withdrawals’ From Retirement Funds in 2024, Study Finds
Legislation could affect your retirement savings next year. Dreamstime/TCA
Juliette Fairley
Juliette Fairley
Freelance reporter
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A new report on retirement accounts found that early withdrawal activity increased in 2024, with more participants initiating a “hardship withdrawal.”

A “hardship withdrawal” is when someone takes money out of a retirement account, such as a 401(k), before reaching retirement age, and it can be made only for immediate and heavy financial needs. The IRS defines such needs as expenses related to medical care, mortgage assistance, tuition, payments to prevent eviction or foreclosure, and funeral costs.

Juliette Fairley
Juliette Fairley
Freelance reporter
Juliette Fairley is a freelance reporter for The Epoch Times and NTD and a graduate of Columbia University’s Graduate School of Journalism. Born in Chateauroux, France, and raised outside of Lackland Air Force Base in Texas, Juliette is a well-adjusted military brat. She has written for many publications across the country. Send Juliette story ideas at [email protected]