For example, if you pulled $200,000 now and qualified under a penalty-free exception, you’d still pay full income tax on the ...

A large portion of employees withdraw their entire 401(k) balance when they leave a job rather than rolling it over to their ...

As of 2025, the average 401(k) balance for Americans in their 50s is around 490,000 dollars. That means a 54-year-old with 4 ...

Retirement no longer feels far off for Generation X – those born between 1965 and 1980. A fortunate few may have already exited the workforce and many more will follow in the next two decades. Early ...

Early withdrawals from your 401(k) may ease today’s cash crunch, but taxes, penalties, and lost compound gains can cost you tens of thousands in the long run.

Most 401(k) plans allow workers to withdraw money early. Early withdrawals are typically taxed as income and may be subject to a 10% penalty. The IRS waives the 10% penalty in certain circumstances.

Last week, Rep. Haley Stevens (D-MI) introduced legislation aimed at waiving early withdrawal penalties for victims of retirement account fraud. The proposed bill, titled the “No Penalties for Victims ...

When you stop working years before most people, you’re not just retiring early — you’re signing up for an unusually long ...

Any money you move from a traditional IRA to a Roth IRA is treated as ordinary income. That's why you should make these ...

During challenging financial times, people often consider withdrawing money from their 401(k) plans. Balances in 401(k) plans are deceiving. They are not like checking accounts where what you see is ...

See our CD penalty calculator and a list of banks’ penalties to find out what an early withdrawal costs. Many, or all, of the products featured on this page are from our advertising partners who ...