Question by  SaiPriya (26)

How much will I lose if I cash out my 4o1k?

I know there is a penalty to taking money out of your 401k but I do not know what it is.


Answer by  drJ (841)

The penalty is 10% if you are under age 59 1/2, plus you will owe taxes on the money (varies by your tax bracket). You will also have the "penalty" of possibly locking in losses (if you sell low) as well as missing out on future growth.


Answer by  maber (1427)

There is a mandatory 10 percent tax penalty for cashing in your 410k early. There is no way to avoid this.

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