By withdrawing $5,000 from your 401(k) account you will forego $42,803 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>$1,750</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>$42,803</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" ); 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// --> </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>$6,750</td><td>$540</td><td>$7,290</td></tr><tr><td role="rowheader" scope="row">2</td><td>7,290</td><td>583</td><td>7,873</td></tr><tr><td role="rowheader" scope="row">3</td><td>7,873</td><td>630</td><td>8,503</td></tr><tr><td role="rowheader" scope="row">4</td><td>8,503</td><td>680</td><td>9,183</td></tr><tr><td role="rowheader" scope="row">5</td><td>9,183</td><td>735</td><td>9,918</td></tr><tr><td role="rowheader" scope="row">6</td><td>9,918</td><td>793</td><td>10,711</td></tr><tr><td role="rowheader" scope="row">7</td><td>10,711</td><td>857</td><td>11,568</td></tr><tr><td role="rowheader" scope="row">8</td><td>11,568</td><td>925</td><td>12,494</td></tr><tr><td role="rowheader" scope="row">9</td><td>12,494</td><td>1,000</td><td>13,493</td></tr><tr><td role="rowheader" scope="row">10</td><td>13,493</td><td>1,079</td><td>14,573</td></tr><tr><td role="rowheader" scope="row">11</td><td>14,573</td><td>1,166</td><td>15,739</td></tr><tr><td role="rowheader" scope="row">12</td><td>15,739</td><td>1,259</td><td>16,998</td></tr><tr><td role="rowheader" scope="row">13</td><td>16,998</td><td>1,360</td><td>18,357</td></tr><tr><td role="rowheader" scope="row">14</td><td>18,357</td><td>1,469</td><td>19,826</td></tr><tr><td role="rowheader" scope="row">15</td><td>19,826</td><td>1,586</td><td>21,412</td></tr><tr><td role="rowheader" scope="row">16</td><td>21,412</td><td>1,713</td><td>23,125</td></tr><tr><td role="rowheader" scope="row">17</td><td>23,125</td><td>1,850</td><td>24,975</td></tr><tr><td role="rowheader" scope="row">18</td><td>24,975</td><td>1,998</td><td>26,973</td></tr><tr><td role="rowheader" scope="row">19</td><td>26,973</td><td>2,158</td><td>29,131</td></tr><tr><td role="rowheader" scope="row">20</td><td>29,131</td><td>2,330</td><td>31,461</td></tr><tr><td role="rowheader" scope="row">21</td><td>31,461</td><td>2,517</td><td>33,978</td></tr><tr><td role="rowheader" scope="row">22</td><td>33,978</td><td>2,718</td><td>36,697</td></tr><tr><td role="rowheader" scope="row">23</td><td>36,697</td><td>2,936</td><td>39,632</td></tr><tr><td role="rowheader" scope="row">24</td><td>39,632</td><td>3,171</td><td>42,803</td></tr></table>