Early Withdrawal

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Dictionary Says

Definition of 'Early Withdrawal'

The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account, such as an IRA or 401(k) before a prescribed time. Early withdrawal could be anything earlier than the account owner's attainment of a prescribed minimum age requirement, or the maturity of a fixed-term investment, such as a certificate of deposit (CD). 
Investopedia Says

Investopedia explains 'Early Withdrawal'

When an early withdrawal is made, the investor usually incurs an early withdrawal fee, which acts as a deterrent to frequent withdrawals before the end of the early withdrawal period. As such, an investor would usually only opt for early withdrawals if there were pressing financial concerns that warranted it, or if he or she had a markedly better use for the funds.
Search results for

'Early Withdrawal'

  • Certificates Of Deposit: The Basic Model | Investopedia

    http://www.investopedia.com/university/certificate-of-deposit-cd/cd2.asp
    ... CDs with a maturity date longer than three years may impose a penalty of 180 to
    365 days of interest for early withdrawal. There are exceptions, however. ...

  • Do I still have to pay penalties and taxes on money that I don't ...

    http://www.investopedia.com/ask/answers/195.asp
    It depends. Let's address the two penalties that will apply - the 10%
    early-withdrawal penalty and the 20% federal withholding -. ...

  • As a temporary resident of the US, can I withdraw funds from my ...

    http://www.investopedia.com/ask/answers/161.asp
    ... a tax deduction for your contribution, the amounts that you later withdraw will
    be subject to income tax and an additional 10% early-withdrawal penalty. ...

  • 8 Reasons To Never Borrow From Your 401(k)

    http://www.investopedia.com/articles/retirement/06/eightreasons401k.asp
    ... loan, it is treated as a withdrawal and the outstanding loan balance will be subject
    to current income taxes in addition to a 10% early withdrawal penalty if ...

  • Cashing In Your Life Insurance Policy

    http://www.investopedia.com/articles/pf/08/life-insurance-cash-in.asp
    ... meaning the amount of the loan up to the earnings in the policy will be taxable
    and could also be subject to the pre-59.5 early-withdrawal penalty. ...

  • Roth IRAs: Distributions | Investopedia

    http://www.investopedia.com/university/retirementplans/rothira/rothira3.asp
    ... The following illustration shows when taxes and the early withdrawal penalties apply
    to Roth IRA distributions. (Learn more in 9 Penalty-Free IRA Withdrawals.) ...

  • Introduction To Annuities: Advantages And Disadvantages ...

    http://www.investopedia.com/university/annuities/annuities2.asp
    ... Illiquidity – Most annuity contracts charge stiff surrender penalties for early
    withdrawal, plus a 10% premature distribution penalty to investors who take ...

  • When Your Employer Cuts Your 401(k) Match

    http://www.investopedia.com/articles/retirement/09/employer-cuts-401k-match.asp
    ... Making a withdrawal is treated as taxable income, which may require payment
    of federal taxes and an early withdrawal penalty. The ...

  • I have a profit-sharing plan with my former employer. I am now ...

    http://www.investopedia.com/ask/answers/10/profit-sharing-down-payment.asp
    ... Unlike 401(k)s, profit-sharing plans are more flexible about early-withdrawal
    exceptions because the early-withdrawal rules are set by each company. ...

  • 5 Ways To Afford Early Retirement - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1211/5-Ways-To-Afford-Early-Retirement.aspx
    ... retire or separate from service at age 55 are eligible to start drawing from their
    retirement plans at that time, without incurring an early withdrawal penalty ...

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