What happens if you take your 401k early

As of 2021, if you are under the age of 59½, a withdrawal from a 401 (k) is subject to a 10% early withdrawal penalty. You will also be required to pay regular income taxes on the withdrawn funds …

The IRS generally requires automatic withholding of 20% of a 401 (k) early withdrawal for taxes. So if you withdraw $10,000 from your 401 (k) at age 40, …

5 Consequences of an Early 401(k) Withdrawal | 401ks | US News

Official Site: https://money.usnews.com/money/retirement/401ks/articles/consequences-of-an-early-401-k-withdrawal

Here’s what happens if you withdraw money from your 401 (k) account early: You could trigger a higher tax bill. You may have to pay a penalty. Your request might …

Pros: You‘re not required to pay back withdrawals and 401 (k) assets. Cons: If you take a hardship withdrawal, you won’t get the full amount, as withdrawals from 401 (k) accounts are generally taxed as ordinary income. Also, a 10% early withdrawal penalty applies on withdrawals before age 59½, unless you meet one of the IRS exceptions.

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