Learn how to calculate IRS’s 10% early‑withdrawal penalty on 401(k)s—with examples, exceptions, SECURE 2.0 updates, and ...

One of the biggest "cons" of a 401k or IRA is that your money is "locked up" until retirement. But did you know that there are ways to withdraw money early - without penalties?

For most people this will mean funding an ordinary or traditional IRA during your working years, and then paying income tax on IRA distributions in retirement when your income is likely to be lower.