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For those who’re less than age fifty nine ½, you might experience an early withdrawal penalty on top of the taxes you already owe.
Should you’re below age 59 ½, you can encounter an early withdrawal penalty in addition to the taxes you presently owe.
In the event you don’t repay your loan, it goes into default. A defaulted loan will become a withdrawal and may be subject matter to taxes and penalties. In addition, it forever drains your retirement strategy.
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