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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.
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 ...
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 ...
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 ...
There are certain circumstances which allow you to make early withdrawals from a 401(k) or an IRA without penalty, but even in those instances the withdrawal is subject to regular income tax. The ...
The biggest caveat when it comes to 401(k) withdrawals is that you’ll be hit with a 10% early distribution penalty if you take money out before you reach age 59.5.