Uncle Sam is getting rich on 401(k) withdrawals

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in Compensation and Benefits,Human Resources

Employees who made early withdrawals from their 401(k) retirement savings plans paid $5.7 billion in penalties to the IRS in 2011, the most recent year for which data are available.

With the standard 10% IRS bite on early withdrawals, that means Americans dipped into their 401(k)s early to the tune of roughly $57 billion in 2010.

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