Why this is correct (Q10 — withdrawing before retirement-age threshold without exception triggers penalty): Early-withdrawal penalties are a policy tool designed to discourage using retirement accounts for current consumption. With pre-tax accounts, distributions before a typical retirement threshold (commonly age 59½ in many rulesets) are often subject to both ordinary income tax and an additional penalty unless you meet a specific exception. The penalty is an extra cost on top of regular income tax and varies by account type and rule set. This answer reflects the straightforward fact that an unqualified early withdrawal (i.e., before the plan’s defined age and without an applicable exception) is the canonical trigger of the penalty.

Practical takeaway & alternatives: Before tapping retirement savings early, review plan rules and potential exceptions (hardship provisions, certain medical expenses, disability, or separation-from-service rules may apply in specific circumstances). Also evaluate alternatives like building emergency savings, low-interest loans, or short-term borrowing. If you think you may need funds before retirement, initially prioritize building a small liquid emergency fund so you avoid costly early withdrawals that reduce long-term retirement security.