7 ms·
if you take the money out of your 401K before you are 59.5 years, you will get a 10% penalty in addition to the amount being taxed... tax alone could easily be
by HNDen21 2y ago
if you take the money out of your 401K before you are 59.5 years, you will get a 10% penalty in addition to the amount being taxed... tax alone could easily be 25%
- pc86 2y agoGood? It's tax-advantaged for a reason. As a taxpayer I want people paying for their own retirement. I don't want social spending to explode because people don't save enough. The penalty (which is not nearly high enough IMO) is there to dissuade people from using it as a piggy bank then mortgaging their future and the social spending of their neighbors because they want to buy a new Tahoe or put an addition on their fully-mortgaged house.