Question: is there a penalty for withdrawing from 401k right now?
Answer: Typically, the penalty for withdrawing from a 401(k) before the age of 59½ is 10% of the distribution, plus an automatic withholding of at least 20% for taxes. But with the passage of the CARES Act, that all changes in 2020. ... The distribution can be taxed as income spread evenly over tax years 2020, 2021 and 2022.