May 7, 2026
The 401k access rules they never taught you — RMDs, hardship withdrawals, loans & hidden costs.
👉 More Without the Bank Here: https://www.youtube.com/channel/UCXYvzroUouEMsTGKFw5nJHQ
In this episode, Tarisa breaks down the third half-truth of 401k plans: access and distribution. The rules around when and how you can touch your own retirement money are far more restrictive than most people realize — and ignoring them could cost you thousands.
In this episode:
✅ Required Minimum Distributions (RMDs) — why the government forces
withdrawals at 73, even if you don't need the money
✅ Hardship Distributions — the only 5 qualifying events that avoid
the 10% early withdrawal penalty
✅ 401k Loans — the repayment rules, what happens if you leave your
job, and the hidden opportunity cost
✅ Inherited 401k — what your beneficiaries actually owe in taxes
when they inherit your account
✅ Whole Life Insurance — how it offers uninterrupted compounding
and flexible access as an alternative
This is Part 3 of our series on the Top 5 Half-Truths of 401k. Don't miss it.
💡 Key Ideas
1. RMDs force withdrawals at 73 — ready or not. The IRS mandates
distributions starting at age 73 to collect deferred taxes. Even if
you don't need the money, you're required to take it — and it can
push you into a higher tax bracket.
2. Only 5 events qualify for a penalty-free hardship distribution. Medical expenses, primary home purchase, eviction/foreclosure prevention, funeral costs, and primary residence repairs are the only IRS-approved exceptions to the 10% early withdrawal penalty.
3. 401k loans carry more risk than most people know. You can borrow up to $50,000, but if you leave your job, the balance may be due in as little as 60–90 days. Miss the deadline and it's reclassified as a taxable distribution — plus a 10% penalty.
4. The real cost of a 401k loan is the compounding you miss. Money borrowed from your account stops earning. It's not just the interest — it's the opportunity cost of interrupted growth over time.
5. Whole life insurance (especially when structured for Infinite Banking) lets your money work while you borrow. Unlike a 401k loan, policy loans use the insurance company's money — your cash value keeps earning uninterrupted compound interest the entire time.
Chapters
0:00 - Introduction & Series Overview
1:33 - Required Minimum Distributions (RMDs)
2:34 - Hardship Distributions & Qualifying Events
3:30 - 401k Loans: Rules & Repayment
6:00 - The Hidden Opportunity Cost of 401k Loans
8:04 - Inherited 401k Tax Rules
8:35 - 401k Limitations Recap
12:30 - Whole Life Insurance as an Alternative
16:30 - Wrap-Up & Next Episode Preview
📅 Ready to build a strategy that actually works for you?
👉 Get the book here and schedule your call with Tarisa or Mary Jo →
https://www.withoutthebank.com/book