Question: is there a penalty for taking money out of 401k?
Answer: As of 2019, if you are under the age of 59½, a withdrawal from a 401(k) is subject to a 10% early withdrawal penalty. You will also be required to pay normal income taxes on the withdrawn funds. 1﻿ For a $10,000 withdrawal, once all taxes and penalties are paid, you will only receive approximately $6,300.