By withdrawing $50,000 from your 401(k) account you will forego $62,986 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 $25,000 on your withdrawal after paying income taxes and early withdrawal penalties.<table class='simpletable'><tr><th colspan='3' role="rowheader" scope="col" class='section'>Lost retirement funds</th></tr><tr><td role="rowheader" scope="row">Early withdrawal amount</td><td></td><td>$50,000</td></tr><tr><td role="rowheader" scope="row">Total lost value at retirement</td><td>=</td><td>$62,986</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>$50,000</td></tr><tr><td role="rowheader" scope="row">Early withdrawal penalty</td><td>-</td><td>$5,000</td></tr><tr><td role="rowheader" scope="row">Taxes</td><td>-</td><td>$20,000</td></tr><tr><td role="rowheader" scope="row">Net amount after penalty and taxes</td><td>=</td><td>$25,000</td></tr></table><img alt="chart image" src="http://host3.calcxml.com/charts/chart177707663350198547.gif"><table class='simpletable'><tr><th>Year</th><th>Beginning Balance</th><th>Earnings</th><th>Ending Balance</th></tr><tr><td>1</td><td>$50,000</td><td>$4,000</td><td>$54,000</td></tr><tr><td>2</td><td>54,000</td><td>4,320</td><td>58,320</td></tr><tr><td>3</td><td>58,320</td><td>4,666</td><td>62,986</td></tr></table>