More Americans are withdrawing retirement savings early in 2024, with both hardship and nonhardship distributions on the rise. Financial pros advise against using 401(k)s as emergency funds due to penalties and potential long-term financial harm. Building a savings buffer and borrowing against accounts are recommended alternatives to avoid penalties and preserve future growth potential.

Read more at Yahoo Finance: More Americans are drawing from retirement savings early. Why financial pros say that’s a recipe for disaster.