Taking a 401k or Other Workplace Plan - Is There a 10% Early Withdrawal Penalty?

The main penalty is what they refer to as an early withdrawal penalty and it's a 10% penalty on the amount that's taxable from the distribution. The IRS actually has a decent website with a table on the different exceptions. There's absolutely some tax plan that can be done to navigate those penalties, but they are in place and we do need to be cognizant of that.