You’ve done the hard part. You lived modestly, you saved regularly, and now you have a nest egg large enough to allow you to retire early. There’s just one problem: The IRS will charge you a 10% early withdrawal penalty if you take money out of your 401(k) because you’re under age 59 1/2.
It might seem like an impossible bind, but there are two main ways you can get the money you need while avoiding the tax penalty. However, they come with pros and cons of their own.
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