Money Withdrawn From 401K Before Retirement Is Costly

As the economy weakens, prices soar and companies are downsizing, more and more people are withdrawing money from their 401K accounts to pay for living expenses and to repay loan debts.
While that may sound like a quick fix to your money problems, it will also cost you a lot of money. For people in the middle to upper income level, an early withdrawal from your 401K retirement account could cost you up to one half of your withdrawal in federal and state taxes and the 10 percent penalty fee.
People making early 401K withdrawals underestimate the cost, and when the taxes are due, they don't have the money to pay them. Putting them right back where they began, or even worse off.
Count the cost before making that early withdrawal from your 401K retirement account.