If You Withdraw Money from Your 401(k) Account Before You

question 265

True/False

If you withdraw money from your 401(k) account before you turn 59.5 years old, you will likely have to pay a 10% early withdrawal penalty.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members from the company's current or retained earnings.

Capital Stock

Reflects the amount of equity financing a company has generated through the sale of its shares to investors.

Financing Activities

Transactions and events whereby resources are obtained from, or repaid to, owners (equity financing) or creditors (debt financing).

Statement Of Cash Flows

A financial report showing the inflows and outflows of cash within a company over a specific period.