Cashing Out Early
“Early distributions” are classified in both cases as any money distributed before age 59 1/2. Those distributions are subject to a 10% tax on the amount you must include as part of your gross income for tax purposes, on top of any taxes you owe on the distribution itself.
Some early distributions are OK. For instance, you can take out funds for things like a disability, or a qualified first-time home purchase. Of course, sometimes shit happens that doesn’t meet the IRS’ requirements, and you might need to withdraw from your plans, penalty and all. But you should know the actual extent of what you’ll end up losing financially before making that decision.
Plus, having a real number in mind will almost certainly dissuade you from any non-emergencies like that new Porsche.