More People Tapping Retirement Funds to Pay Bills

More Americans are dipping into their retirement accounts to pay off bills or put money down on a new home.

The survey by MagnifyMoney found 52% of Americans have already tapped their retirement accounts. Of those, 23% said they used the cash to get out of debt, 17% used the money as a down payment on a new home. Other reasons for getting money out of an IRA or 401K include paying college tuition, medical bills, or other reasons.

A full 60% said they weren't sure of their retirement account balance and 15% said they have no idea at all.

Most financial advisers will warn people not to tap into retirement accounts because of the heavy tax penalties that come with early withdrawal. Read more about the study here.

As far as age groups, millennials (54%) have dipped into their savings the most, followed by generation X (50%), and baby boomers (43%). Millennials were also the most likely to say that taking money from a retirement account early can be justified under the right circumstances.

Image courtesy Getty


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