Early withdrawal penalty

Early withdrawal penalty

Penalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon maturity date.

Early Withdrawal Penalty

A fee assessed on the withdrawal of funds from a fixed-income investment before the prescribed time. Early withdrawal may come from a certificate of deposit before its maturity. More often, however, early withdrawals refer to withdrawals from a retirement account before the appropriate age (usually 65 or date of retirement, whichever is greater). Early withdrawal penalties exist to discourage the frequent or abusive use of early withdrawals. As a result, early withdrawals usually occur when the account holder is in great financial need.
References in periodicals archive ?
For 3-month and 6-month CDs, the most common early withdrawal penalty is three months' worth of interest.
You'll also have paid a hefty early withdrawal penalty.
The firm's "2014 Early CD Withdrawal Penalties Survey" measured early withdrawal penalty policies on 3-month, 6-month, 1-year, 2-year and 5-year CDs from May 5-14, 2014, at the top 10 banks and thrifts in the 10 largest U.
5, there is an additional 10 percent early withdrawal penalty.
Here's the good news: "If you don't like the new terms offered, you can close your account without any early withdrawal penalty," says Martin Becket, an FDIC senior deposit insurance specialist.
Customers may withdraw their money from any account that's been transferred to Home Federal without an early withdrawal penalty until they enter into a new deposit agreement with Home Federal, as long as the deposits haven't been put up as collateral for loans.
Assuming T neither dies nor becomes disabled, the $10,000 distributions (no more and no less) need to continue at least until he is age 59 1/2 to avoid the early withdrawal penalty.
Otherwise, it is included in the taxpayer's gross income and may be subject to the 10% early withdrawal penalty of IRC [section] 72(t).
Tax rules for distributions diverge for traditional and Roth IRAs, but both types are generally subject to a 10 percent early withdrawal penalty, with some exceptions.
The primary reason is a 10 percent early withdrawal penalty for any Qualified Plan distributions before the participant or owner is 59-and-a-half years old.
The individual must pay ordinary Federal and possibly state income taxes on the money, and probably an additional 10% early withdrawal penalty if he or she is younger than 59 1/2.
You may withdraw the money, but, similar to an IRA, the withdrawn funds are subject to federal income tax, plus a 10% early withdrawal penalty if you are under age 65.

Full browser ?