Business / Taxes / Withdrawal: A withdrawal is money you take out of your banking, brokerage firm, or other accounts. If you withdraw from tax-deferred retirement accounts before you turn 59 1/2, you may owe a 10% early withdrawal penalty plus any income tax that's due on the amount. In everyday usage, the term withdrawal is used interchangeably with distribution to describe money you take from your tax-deferred accounts, though distribution is actually the correct term.
Business / Taxes / Hardship Withdrawal: A hardship withdrawal, also known as a hardship distribution, occurs when you take money out of your 401(k) or other qualified retirement savings plan to cover pressing financial needs. You must quali MORE
Business / Taxes / Early Withdrawal: If you withdraw assets from a fixed-term investment, such as a certificate of deposit (CD), before it matures, it is considered an early withdrawal. If you withdraw from an individual retirement accou MORE
Business / Taxes / Negotiable-Order-Of-Withdrawal Account: A negotiable-order-of-withdrawal (NOW) account is an interest-bearing checking account that pays interest on the balance, usually at a rate comparable to a money market account. You may be required to MORE