EVERYTHING IS GOING SWIMMINGLY: More Americans Are Treating Their 401(k)s Like Cash Machines. “A record share of 401(k) account holders took early withdrawals from their accounts last year for financial emergencies, according to internal data from Vanguard Group. . . . Americans are dealing with conflicting financial forces. While hiring has been strong and workers’ earnings keep rising, the cost of groceries, child care and car insurance keeps climbing. More people are carrying heftier balances on their credit cards. Emergency distributions hit back-to-back record highs in 2022 and 2023, according to Vanguard, which administers 401(k)-type accounts for nearly five million people and published the data ahead of an annual report scheduled for June. The Internal Revenue Service allows withdrawals for hardship-related reasons, including preventing evictions and paying medical and tuition bills. People who take them from traditional accounts must pay income tax, plus often a 10% penalty if they are younger than 59½ years old. Nearly 40% of those who took a hardship distribution last year did so to avoid foreclosure, compared with 36% in 2022.”