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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).
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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.
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Search results for 'Early Withdrawal'
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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. ...
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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 -. ...
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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. ...
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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 ...
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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. ...
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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.) ...
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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 ...
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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 ...
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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. ...
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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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