Early Withdrawal Penalty
TaxesA 10% penalty on retirement account withdrawals before age 59½, in addition to regular income tax.
Example
Example: On a $75,000 salary, understanding early withdrawal penalty could save you hundreds or thousands at tax time. For instance, if you are in the 22% marginal bracket, knowing how early withdrawal penalty works helps you make smarter decisions about deductions, credits, and withholding. Check your tax picture with our income tax calculator.