What Is the Penalty for Early Withdrawal Before Age 59 1/2?

Name: What Is the Penalty for Early Withdrawal Before Age 59 1/2?
Uploaded: 2026-07-18T00:00:00Z
Duration: 25 s
Description: Learn about the 10% penalty for early retirement account withdrawals before 59 1/2 and possible exceptions to avoid it.

Learn about the 10% penalty for early retirement account withdrawals before 59 1/2 and possible exceptions to avoid it.

Published Jul 18, 2026

Video transcript

Early withdrawals from a retirement account before age 59 1/2 typically incur a 10% penalty on the amount withdrawn, in addition to any applicable income tax. Certain exceptions may apply based on specific circumstances.

Questions and answers

What happens if I withdraw money from my retirement account before age 59 1/2?
Withdrawing money before age 59 1/2 usually triggers a 10% penalty on the amount withdrawn plus applicable income taxes, unless you qualify for certain exceptions.
Are there any exceptions to the 10% early withdrawal penalty?
Yes, exceptions exist such as disability, first-time home purchase, higher education expenses, and certain medical costs which may exempt you from the 10% penalty.
How much is the penalty for early withdrawal from retirement accounts?
The penalty is typically 10% of the amount withdrawn if you take money out before age 59 1/2 and do not meet exception criteria.
Does the early withdrawal penalty apply to all types of retirement accounts?
Most qualified retirement accounts like IRAs and 401(k)s have the 10% early withdrawal penalty, though rules and exceptions may vary by account type.