How To Take It A 401(k) hardship withdrawal is the pulling of money from your retirement account to get cash now. The money becomes subject to tax and possible penalty fees. Learn more.

Q. I took a COVID hardship withdrawal from my 401(k). I understand that I have to claim it as income either at once or over three years on my tax return if I don’t pay it back within three years.

Coronavirus economics: Should you tap your 401(k) right now? 01:14 The $900 billion stimulus bill that Congress passed Monday allows workers to take money from their 401(k)s without being hit with ...