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Can I borrow from my 401(k)?

Don’t worry, just because this money has been earmarked for retirement doesn’t mean it’s locked up for good. You can dip into your 401(k) or IRA at any point and not be penalized if you return the money within 60 days. If that’s not an option, you’ll have to pay income tax and a 10 percent penalty. However, if you hit a financial hardship, the IRS will waive the 10 percent penalty in certain sympathy cases: You’ve been laid off, are mired in medical bills, trying to buy a home, or paying for a child’s college tuition. Bottom line: Try not to borrow from it.

-- Judy Dutton

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