retirement
Early Withdrawal Penalty
Fee for withdrawing funds before maturity
Also known as: 10% penalty, early withdrawal
What You Need to Know
An early withdrawal penalty is a charge imposed when funds are withdrawn from certain accounts before a specified date or age. Common examples include 10% penalties on retirement account withdrawals before age 59½ and interest penalties on early CD withdrawals.
Sources & References
This information is sourced from authoritative government and academic institutions:
- irs.gov
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions
Related Calculators & Tools
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