Need Cash Quickly? 3 Things to Try Before Tapping Your Retirement Savings.

By Kailey Hagen, CFP – Mar 29, 2026 at 7:00PM ESTKey PointsWhenever possible, delay the payment or look into a payment plan.You can use a personal loan to cover just about any expense.A 401(k) loan may be less hard on your retirement savings, if this is an option for you.Financial emergencies aren't just stressful. They can be genuinely destabilizing if you don't have emergency savings to cover the expense. When you need money quickly, tapping your retirement savings can feel like your only option. The problem with that is that you'll set your retirement plan back, and you'll probably pay an early withdrawal penalty to the IRS, too. So before you go that route, it's worth exploring the following three ways to get the cash you need. Image source: Getty Images. 1. Delay the expense, if possible If you don't need to make the payment right now, don't. Give yourself some time to save up for it over the next few months. Defer a little from each paycheck for the expense. Even if you don't manage to save the full amount, you'll minimize how much you have to take from retirement savings. If you owe a creditor, reach out to see if you can set up a payment plan. This might enable you to spread your payments over several months or years so you don't have to pay a lump sum right away. 2. Consider taking out a loan Borrowing money means taking on additional debt and adding another monthly payment to your budget. But it enables your retirement savings to remain invested and growing. It'll also help you avoid the 10% early withdrawal penalty you'll typically face for taking money out of retirement accounts under age 59 1/2. The type of loan that works best for you depends on what you need the money for. A personal loan is a good all-purpose choice. You can use these loans for just about anything, and they don't require you to put down any collateral. However, that also means interest rates on these loans are higher than on some other types of loans. Make sure you thoroughly understand the loan terms before you agree to them. Know how much you'll have to pay per month and how much you'll pay overall. Don't forget to factor in closing costs. 3. Consider a 401(k) loan if you have to tap retirement savings Not all 401(k)s offer loans, but if yours does, this could be a better alternative than an early retirement account withdrawal. This lets you borrow up to the lesser of $50,000 or 50% of your vested account balance. If 50% of your vested account balance is less than $10,000, you may be able to borrow up to $10,000. You must pay this back over time with interest. But that interest goes into your retirement savings rather than into a creditor's pocket. This can minimize the toll the 401(k) loan takes on your retirement savings. However, you may face penalties and taxes if you fail to repay the loan as scheduled. It's worth comparing all your options to see which one(s) make the most sense for you. If you can avoid or even reduce how much you withdraw from retirement savings, you'll be much better off.Read NextMar 29, 2026 •By Kailey Hagen, CFPWorking and Claiming Social Security at 62? 2 Things That Could Happen.Mar 29, 2026 •By Maurie BackmanWorried Market Volatility Will Hurt Your Retirement Savings? Here's the 1 Important Thing to Know.Mar 29, 2026 •By Kailey Hagen, CFPHere's Exactly When to Expect Your April 2026 Social Security BenefitMar 29, 2026 •By Kailey Hagen, CFPHere's the Average Woman's Social Security Benefit at Ages 62 to 70Mar 29, 2026 •By Kailey Hagen, CFPInherited an IRA? The 10-Year Rule Is Now Being Enforced -- What You Must DoMar 29, 2026 •By Christy Bieber3 Investing Myths That May Be Costing You Serious MoneyAbout the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.

Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKailey