Early Withdrawal
外汇网2021-06-19 13:53:44
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The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account, such as an IRA or 401(k) before a pscribed time. Early withdrawal could be anything earlier than the account owner's attainment of a pscribed minimum age requirement, or the maturity of a fixed-term investment, such as a certificate of deposit (CD).
When an early withdrawal is made, the investor usually incurs an early withdrawal fee, which acts as a deterrent to frequent withdrawals before the end of the early withdrawal period. As such, an investor would usually only opt for early withdrawals if there were pssing financial concerns that warranted it, or if he or she had a markedly better use for the funds.
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