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What is a 401(k) early withdrawal penalty?

If you make an early withdrawal from a traditional 401 (k) retirement plan, you must pay a 10% penalty on the withdrawal. There are some exceptions to this rule, such as certain health expenses and life events. Learn more below about how to calculate your specific 401 (k) early withdrawal penalty.

How do I calculate early 401(k) withdrawals?

Here’s the Forbes Advisor 401 (k) Early Withdrawal Calculator: Our calculator enables you to see the impact of an early 401 (k) withdrawal in terms of lost investment opportunities. All you need to do is type in each of the following variables: Retirement account balance. The amount of money currently in your 401 (k). Amount you’d like to withdraw.

Can I withdraw from my 401(k) without a penalty?

Between the taxes and penalty, your immediate take-home total could be $7,000 from your original $10,000. In certain situations, you may be able to withdraw from your 401 (k) without incurring the 10% early distribution penalty. Generally, the IRS will waive the penalty if these scenarios apply:

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