>>Remember though that it’s a 10% penalty PLUS regular income tax.
Is it regular income tax, or regular capital gains tax? Probably depends on the investment. My IRA is self-funded with post-tax money. Since I give to a 401(k) at work, it never qualified for any tax breaks. But if I did the same my 401(k), I’d guess I’d pay regular income tax. But I must admit ignorance on these kinds of tax matters.
I’m thinking I should close it since it gains me nothing more than a brokerage account, which I already have.
Perhaps use it to buy ‘prepper’ supplies or expand my gardening capabilities.
It’s regular income tax on income you shielded from taxes when you put it into the 401k and any un-taxed matching funds that were added by your employer.
A theoretical advantage was that you’ll be in a lower tax bracket after retirement. That certainly applies to some folks, but things may change over time.