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How much will I lose if I cash out my 401(k)?
Short answer
You’ll owe income tax, and usually a 10% penalty if you’re under 59½, plus you lose future growth. The total hit can be large.
See every step in 1 minuteWhat to do with your 401(k) after leaving a job
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Official sources
- IRS: rollovers of retirement plan distributionsirs.gov
- DOL: Retirement Savings Lost and Foundlostandfound.dol.gov
- SEC Investor.gov: rolloversinvestor.gov