<prompt> Human: Hi everyone, I was looking at my 401k contributions and hatched a plan. Could you guys please let me know if you see any obvious flaws?- My employer matches 50 of my 401k contribution up to 7.5 15 contribution by me- I currently contribute 8 of my pay 12 total with employer match- I am in the 25 tax bracketI know that as a long term strategy, I should be contributing as much as possible to my retirement. I increase my contribution every year when I get my annual raise 5-10 for the last 3 years, with an equal or better one expected this year.nbsp; My plan is this: to increase my contribution to the max. Then withdraw the amount above what I am currently contributing right away. I believe that the math works out in my favor. Here it is: nbsp; Current total contribution 12 New total contribution 22.5Difference 10.5nbsp; For every dollar I contribute, I have 1.50 of value in my 401k. If i withdraw that early, I pay a 10 penalty and 25 in taxes, which leaves me with 97.5 cents per dollar I contribute.nbsp; If I dont increase my contribution, I pay 25 tax on each dollar, leaving me with 75 cents. nbsp; It looks like I could increase my take home by by 22.5 cents per additional dollar I contribute. I could also use this strategy to increase my nest egg and keep my total take home pay the same. nbsp; Any issues with this plan?EDIT: Caught up in the math, missed an obvious flaw - Im not allowed to withdraw 401k money unless I leave the company or experience a hardship. Thanks for the help!  <response>: You cant just withdraw money from a 401k at will, you can only either do it when your employment ends, or if your plan allows hardship withdrawals, which allows you to withdraw only in one of the following situations: Unexpected medical expenses Costs relating to the purchase of a home Tuition and related educational fees and expenses Payments necessary to prevent eviction from, or foreclosure on, your home Burial or funeral expenses Expenses for the repair of damage to your homeAnd you cant just claim hardship, you will need to document it to your plan administrator. 