You Cashed in Your 401k
Your retirement savings will take a big hit if you take money out of an IRA, 401k or another qualified retirement plan before you reach age 59½. You’ll have to pay income taxes on the money, and you’ll probably pay a 10 percent penalty as well unless you used the money for certain qualifying expenses.
You’ll also have to contribute more to make up for the taxes and penalties, making it that much more difficult to reach your goals. Make it a point not to touch your retirement savings until retirement.
