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Early withdrawal penalty

May 1, 2025

By Laurie Rowley

Co-Founder and CEO

Laurie’s career has focused on developing solutions that improve financial security. She is widely regarded as an expert in retirement savings, behavioral finance, and human-centered design.

The 10% penalty tax you must pay to the IRS on any 401(k) distributions taken before you reach age 59 ½. In addition to this penalty, you will also pay regular income taxes on any money you withdraw.

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