• Withdrawal penalty refers to the fee charged to an individual if they make an early withdrawal from a locked or timed account.
  • An example of one of these accounts would be a retirement account such as an IRA.
  • The amount of the withdrawal penalty depends on many factors, including the type of financial instrument involved.
  • In the case of an IRA, there are special discounts for early withdrawals without paying penalty fees.
  • Penalties for withdrawals from IRAs or other retirement accounts can be expensive.