Rule expands penalty-free early 401(k) withdrawals — but new use ‘might not be practical,’ advisor says

Market Intelligence Analysis

AI-Powered
Why This Matters

A provision in the 2022 Secure Act 2.0 has taken effect, allowing penalty-free 401(k) withdrawals for long-term care insurance premiums, but its practicality is uncertain.

Market Impact

Market impact analysis based on neutral sentiment with 70% confidence.

Sentiment
Neutral
AI Confidence
70%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

A provision from the 2022 Secure Act 2.0 is now in effect that allows limited penalty-free withdrawals from 401(k)s to pay long-term care insurance premiums.

Continue Reading
Full article on CNBC
Read Full Article
Original article published by CNBC on December 30, 2025.
Analysis and insights provided by AnalystMarkets AI.