By withdrawing $5,000 from your 401(k) account you will forego $37,288 in future retirement benefits (which includes a six month suspension from contributing to your account and receiving any employer match, if any). Furthermore, you will net only $3,250 on your withdrawal after paying income taxes and early withdrawal penalties.<table class='pure-table' role='grid'><tr><th colspan='3' role="rowheader" scope="col" class='section'>Lost retirement funds</th></tr><tr><td role="rowheader" scope="row">Six month suspension - lost contributions</td><td></td><td>$3,000</td></tr><tr><td role="rowheader" scope="row">Early withdrawal amount</td><td></td><td>$5,000</td></tr><tr><td role="rowheader" scope="row">Total lost value at retirement</td><td>=</td><td>$37,288</td></tr><tr><th colspan='3' role="rowheader" scope="col" class='section'>Impact of early withdrawal</th></tr><tr><td role="rowheader" scope="row">Amount of withdrawal</td><td></td><td>$5,000</td></tr><tr><td role="rowheader" scope="row">Early withdrawal penalty</td><td>-</td><td>$500</td></tr><tr><td role="rowheader" scope="row">Taxes</td><td>-</td><td>$1,250</td></tr><tr><td role="rowheader" scope="row">Net amount after penalty and taxes</td><td>=</td><td>$3,250</td></tr></table> <div id="chart1Container">Chart will load here</div> <script type="text/javascript"> <!-- var myChart1 = new FusionCharts( "MSColumn2D", "myChart1Id", "100%", "100%", "0", "1" ); myChart1.setXMLData("<chart showValues='0' showFCMenuItem='0' decimals='0' formatNumberScale='0' caption='Lost Retirement Funds' xAxisName='Years Until Retirement' numberPrefix='$' bgColor='FFFFFF' showBorder='1' borderColor='FFFFFF' borderThickness='1' canvasBgColor='ffffff' showAlternateHGridColor='0' plotGradientColor='' numberSuffix='' thousandSeparator=',' decimalSeparator='.'><categories><category label='1' /><category label='' /><category label='3' /><category label='' /><category label='5' /><category label='' /><category label='7' /><category label='' /><category label='9' /><category label='' /><category label='11' /><category label='' /><category label='13' /><category label='' /><category label='15' /><category label='' /><category label='17' /><category label='' /><category label='19' /><category label='' /></categories><dataset seriesName=''><set value='8640.0' /><set value='9331.0' /><set value='10078.0' /><set value='10884.0' /><set value='11755.0' /><set value='12695.0' /><set value='13711.0' /><set value='14807.0' /><set value='15992.0' /><set value='17271.0' /><set value='18653.0' /><set value='20145.0' /><set value='21757.0' /><set value='23498.0' /><set value='25377.0' /><set value='27408.0' /><set value='29600.0' /><set value='31968.0' /><set value='34526.0' /><set value='37288.0' /></dataset></chart>"); // --> </script> <table class='pure-table pure-table-bordered' role='grid'><tr><th scope="col">Year</th><th scope="col">Beginning Balance</th><th scope="col">Earnings</th><th scope="col">Ending Balance</th></tr><tr><td role="rowheader" scope="row">1</td><td>$8,000</td><td>$640</td><td>$8,640</td></tr><tr><td role="rowheader" scope="row">2</td><td>8,640</td><td>691</td><td>9,331</td></tr><tr><td role="rowheader" scope="row">3</td><td>9,331</td><td>746</td><td>10,078</td></tr><tr><td role="rowheader" scope="row">4</td><td>10,078</td><td>806</td><td>10,884</td></tr><tr><td role="rowheader" scope="row">5</td><td>10,884</td><td>871</td><td>11,755</td></tr><tr><td role="rowheader" scope="row">6</td><td>11,755</td><td>940</td><td>12,695</td></tr><tr><td role="rowheader" scope="row">7</td><td>12,695</td><td>1,016</td><td>13,711</td></tr><tr><td role="rowheader" scope="row">8</td><td>13,711</td><td>1,097</td><td>14,807</td></tr><tr><td role="rowheader" scope="row">9</td><td>14,807</td><td>1,185</td><td>15,992</td></tr><tr><td role="rowheader" scope="row">10</td><td>15,992</td><td>1,279</td><td>17,271</td></tr><tr><td role="rowheader" scope="row">11</td><td>17,271</td><td>1,382</td><td>18,653</td></tr><tr><td role="rowheader" scope="row">12</td><td>18,653</td><td>1,492</td><td>20,145</td></tr><tr><td role="rowheader" scope="row">13</td><td>20,145</td><td>1,612</td><td>21,757</td></tr><tr><td role="rowheader" scope="row">14</td><td>21,757</td><td>1,741</td><td>23,498</td></tr><tr><td role="rowheader" scope="row">15</td><td>23,498</td><td>1,880</td><td>25,377</td></tr><tr><td role="rowheader" scope="row">16</td><td>25,377</td><td>2,030</td><td>27,408</td></tr><tr><td role="rowheader" scope="row">17</td><td>27,408</td><td>2,193</td><td>29,600</td></tr><tr><td role="rowheader" scope="row">18</td><td>29,600</td><td>2,368</td><td>31,968</td></tr><tr><td role="rowheader" scope="row">19</td><td>31,968</td><td>2,557</td><td>34,526</td></tr><tr><td role="rowheader" scope="row">20</td><td>34,526</td><td>2,762</td><td>37,288</td></tr></table>