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Making an early withdrawal from your 401(k) might sound like a tempting idea — after all, it is your money. But once you know the ramifications, you may feel differently. There are two types of ...
Early 401(k) withdrawals have important tax implications to consider and, ideally, should be avoided. “The early withdrawal penalty amounts to an additional 10% federal tax on the distribution.
Early withdrawals from a 401(k) will likely present long-term financial downsides. Usually withdrawing from your 401(k) prior to turning 59 1/2 results in a 10% early withdrawal penalty. The ...
In most circumstances, taking an early withdrawal from your 401(k) or IRA will result in an additional 10 percent penalty on top of income taxes. There are instances where the penalty is waived ...
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“The IRS charges a 10% penalty tax for early 401(k) withdrawals. That’s on top of the taxes you pay for making any 401(k) withdrawal,” said Todd Stearn of The Money Manua l.