Many people will dip into their 401k to get money to catch up mortgage payments or to deal with some other financial emergency. More often than not, this is a huge mistake. If you failed to solve the problems that led to the financial emergency, it will happen again. You will be left without a retirement, as well as losing a house, car, etc. Moreover, you will be hit with taxes and penalties in the amount of nearly 50% of your withdrawal. Don’t throw away your future.