Question: “I am thinking of using my 401(k) to help pay for part of a new car loan. Alternatively, I could just take $20K from it to help pay for a new car. I’m over 59 1/2 and realize I’d have to pay taxes on it, so I’m not sure which would be more beneficial for me? I’m still working, so I’d still be paying into my 401(k). I don’t imagine it’s worth hiring a financial adviser to help me figure this out, but I’m not sure what to do.”

Answer: It’s great that you’re weighing the pros and cons of different scenarios before making a decision — and while you may not need a financial adviser just for this decision, pros say one of the best times to get one is when you are approaching retirement. You can use this free tool that can match you to a fiduciary adviser, from our ad partner SmartAsset, as well as resources like NAPFA and the CFP Board.

“In general, it’s rarely a good idea to take money from your retirement account for anything other than providing retirement income or to fund a real emergency,” says Richard Haskell, associate dean and director of academic programs at Western Governors University’s School of Business.

Have an issue with your financial planner or looking for a new one? Email questions or concerns to picks@marketwatch.com.

Simply put, withdrawing money from your 401(k) for your car loan would be a taxable event. “How much you pay in taxes would depend on what tax bracket you’re in. Taking a $20,000 loan could put you in a higher bracket,” says chartered financial consultant Steve Azoury at Azoury Financial. At your current stage of life, it’s important to be strategic about where you pull your money from and optimize tax efficiency.

Furthermore, having to pay taxes on money taken from a traditional 401(k) or IRA Is only one factor. “The more important issue may be that you’re almost certain to need that money in the latter part of your retirement years when it’s challenging to replace the income or to do without necessities. You set that money aside for retirement and the best course of action is to use it for that purpose and none other,” says Haskell.

While there’s no guarantee of the short-term result on your 401(k), the long-term result is highly probable to be positive, says certified financial planner Joe Favorito at Landmark Wealth Management. “It’s unlikely that your interest rate will exceed both the opportunity cost and the tax liability,” says Favorito.

When considering taking withdrawals from your 401(k), “start with comparing your interest cost to what your tax rate would be by taking funds from your 401(k) while working, versus what your tax rate would be on the same funds in retirement. Typically, in retirement there is a step down in income, making your tax bracket lower,” says Sloan.

Ultimately, you want to try your best not to create a taxable event. “If you can take the $20,000 loan and pay yourself back without creating a taxable event, then this would likely be your best idea,” says Azoury.

It would likely be better to take a lump sum from an after-tax account. “If that’s not available to you and you need the 401(k) to satisfy the purchase, since you still contribute to the plan, you could contribute less every month equal to the cost of the auto loan. If your potential auto loan is $500 a month, there’s no difference between reducing your contribution by $500 per month versus taking out $500 per month. Either way, you end up in the same place tax wise,” says Favorito.

In short, it’s probably more advantageous to take a low interest car loan versus potentially taking taxable income at a higher tax bracket than you would in retirement. “If you’re most interested in using your 401(k) funds, I’d encourage you to find out if your employer plan allows for a 401(k) loan and add that comparison into the mix,” says Prudential financial adviser Mary Kay Sloan.

Consider, too, that we’re experiencing a relatively low-cost lending environment and it tends to be easy to find financing on new cars, even with small down payments. “Auto manufacturers, dealerships and local lenders are eager to lend — and it’s common to find interest rates of less than 3% on new car loans. A quick Google search or visit to a local auto dealership is likely to uncover numerous options that will not only cost you less than you might suppose but may also allow you to drive home that new car and safeguard your retirement savings,” says Haskell.

Do you need a financial adviser?

While your specific question about a car loan may not warrant an ongoing engagement with a financial adviser, the pre-retirement phase of life is generally a great time to review your finances. “One key aspect of pre-retirement planning is building a runway of secure, safe income. This often means gradually shifting some of your assets from volatile stocks into more stable investments such as bonds with specific maturity dates. The goal is to align these safer investments with your anticipated cash flow needs in early retirement,” says Sullivan. You can use this free tool from that can match you to a fiduciary adviser, from our ad partner SmartAsset, as well as resources like NAPFA and the CFP Board.

Have an issue with your financial planner or looking for a new one? Email questions or concerns to picks@marketwatch.com.

Questions edited for brevity and clarity. By emailing your questions to The Advicer, you agree to have them published anonymously on MarketWatch; they may appear anonymously in other media and platforms.