early 401k withdrawals

Financial Independence, Retire Early (FIRE): Key considerations and risks — Photo by Pavel Danilyuk on Pexels

7 Ways Early 401k Withdrawals Threaten Financial Independence

Early 401(k) withdrawals can erase up to 30% of your retirement savings because the 10% penalty and ordinary income tax are applied to the amount you pull. Most people think the tax hit is a one-time cost, but it also stops the power of compounding, turning a future windfall