Half of the private sector’s workers are now saving money in 401(k) plans, according to a Wall Street Journal report on new numbers from the U.S. Department of Labor.

Seven in ten workers have access to such plans, up from six in ten just ten years ago. And over that same period, participation has risen from 43% to over 50% now.

That should continue to rise, partly because of a federal law that requires many private-sector 401(k) plans to automatically enroll employees. For many new plans created after 2022, employers must enroll workers by putting 3% to 10% of their pay into 401(k) plans and increasing that percentage each year until it reaches the 10%-15% range.

That’s the good news. But there’s still room for improvement: According to the Center for Retirement Research at Boston College, about 40% of the nation’s working population isn’t saving enough money for retirement.  Policymakers at all levels should continue to explore ways to make it easier for more Americans to save for their retirement.

Tapping retirement accounts early can come with penalties

Saving pre-tax earnings in retirement accounts lets you delay taxes until you’re retired and actively withdrawing money — a benefit that allows for faster growth of retirement and pushes taxes years into the future.

But emergencies can upset plans, forcing early withdrawal of money. This type of withdrawal typically comes with some steep penalties.

Taking money early from 401(k) accounts — before you’re 59-1/2 years old — can be very expensive. In addition to the income taxes on those early withdrawals, there is a 10% penalty most of the time.

There are some exceptions, though, depending on the type of retirement account and the reason you’re spending the money, The Wall Street Journal reports. Individual Retirement Accounts (IRAs) allow some types of early withdrawals for higher education and home-buying and other expenses. Roth 401(k) accounts allow withdrawals without taxes for specific expenses like qualified first-time home purchases or medical situations. And there are some cases where the age limit doesn’t apply — like for some workers who retire in the year they turn 55, an IRS regulation known as the “Rule of 55.”

In short: 401(k)s plans are more available than ever before, but there are rules and stipulations to be aware of. There are many ways to access retirement accounts while minimizing penalties and expenses; just be sure to always check your options first!