What are the tax implications of withdrawing money early from a retirement account?

What are the tax implications of withdrawing money early from a retirement account?
When saving for retirement, sometimes there are questions about early withdraw and how it can affect your retirement account. ¬†Clients typically ask us, “What are the tax implications of withdrawing money early from a retirement account?”
ANSWER: Withdrawing money from a retirement account is subject to income tax and an additional 10% penalty. There are several exceptions such as the purchase of a home (up to $10,000), certain medical or education expenses, or if you are totally and permanently disabled.

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