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401k Early Withdrawal Penalty

How to avoid a 401k early withdrawal penalty when you withdraw money early

If you withdraw your money from an 401k or other retirement plan before you turn 59 1/2 yrs old, you may be subject to a 401k Early Withdrawal Penalty of 10%.

There are lots of things you can do to avoid this 401k Early Withdrawal Penalty and these are explained in detail in Taxcafe's brand new guide.

One of the best ways to avoid the 10% tax is to take substantially equal periodic payments. Another option is to take a plan loan. There are also lots of exceptions to the early distribution tax and these are fully covered in the guide.

You should also consider tapping your IRAs and the guide explains ALL the different ways of avoiding the penalty tax if you have a 401k, traditional IRA or Roth IRA.