A hardship withdrawal is a way to take money out of your retirement account early if you’re facing a serious and immediate financial need—like large medical bills, avoiding eviction, or paying for a funeral. It’s meant to help in tough times when you truly have no other options. Unlike loans, hardship withdrawals don’t have to be paid back, but they usually come with downsides. You may have to pay taxes on the money, and possibly a penalty for taking it out early. Plus, pulling money out of your retirement account now can hurt your savings later. Each retirement plan has its own rules about when you can take a hardship withdrawal and what counts as a “hardship,” so it’s important to check the details before making a decision.