I’m going to raid one of my accounts. The tax hit is meaningless. You pay income tax whenever you withdraw. The only added expense is the 10% hit.
In CA with the Federal income tax at 35%, State at 11%, and 10% penalty means that 100K in withdrawl, for an already working couple, ends up being...45K. I belive serfs would rise up against their lords when the King took 1 out of every 2 livestock. This is worse.
I always wondered, what good is it, if the government taxes the future withdrawals, at say, 70%?
The tax hit is meaningless. You pay income tax whenever you withdraw.
.......unless you bump up another tax bracket.