Early withdrawal penalty

(redirected from Early-Withdrawal Penalties)

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 ?
If you are the non-spousal designated beneficiary of a deceased person's IRA, amounts you withdraw from the inherited IRA are not subjected to early-withdrawal penalties.
The 401(k) assets are then used to repay the loan as well as any taxes and early-withdrawal penalties.
ONE-YEAR accounts offer higher interest but usually have early-withdrawal penalties.
CD Early Withdrawal Penalty Waiver: The bank will waive early-withdrawal penalties for disaster victims who prematurely redeem principal and earned interest on First Interstate Bank certificates of deposit.