It started in 1997, when Alain de Botton turned away from writing novels and instead wrote a touching extended essay titled How Proust Can Change Your Life, which became an unlikely blockbuster in the self-helpcategory.
A sample penalty schedule might look like: 1  11 month CDs or shorter charge three monthsâ worth of interest. 2  12 to 59 month CDs charge six monthsâ worth of interest. 3  60 month or longer CDs charge 12 monthsâ worth of interest.
Thatâs because, in the eyes of the IRS, cashing out your 401(k) before you are 59 Â½ is considered an early withdrawal and is subject to a 10 percent penalty on top of regular income taxes.In most cases, your plan administrator will mail you a check for 70 percent of your 401(k) balance.hatâs because, in the eyes of the IRS, cashing out your 401(k) before you are 59 Â½ is considered an early withdrawal and is subject to a 10 percent penalty on top of regular income taxes.