Plain-English definitions for the terms you'll encounter on your financial journey.
The act of taking money out of a retirement account before the age of 59.5, which usually incurs a ten percent tax penalty.
A fee charged by a bank when a customer takes money out of a fixed-term account like a CD before the maturity date.
The specific part of the tax code that outlines the exceptions to the 10% early withdrawal penalty for retirement accounts.
Substantially Equal Periodic Payments is a way to take money out of your retirement account before you are 59 and a half without paying an early withdrawal penalty, provided you commit to taking out a set amount consistently for at least five years.