Early Withdrawal
The removal of funds from a fixed-term investment before the maturity date, or the removal of funds from a tax-deferred investment account or retirement savings account (such as an IRA) before a prescribed time, such as the account owner's attainment of a minimum age requirement.
Investopedia Commentary
When an early withdrawal is made, the investor usually incurs an early withdrawal fee, which acts as a deterrent to frequent withdrawals before the end of the early withdrawal period. As such, an investor would usually only opt for an early withdrawal if there were pressing financial concerns that warranted it, or if he/she had a markedly better use for the funds.
Related Links
Introductory Tour through Retirement Plans
Traditional IRAs Tutorial
Avoiding IRS Penalties On Your IRA Assets
See also: Fixed Term, Guaranteed Investment Contract - GIC, Individual Retirement Account - IRA, Maturity Date, Redemption, Registered Retirement Savings Plan - RRSP, Tax Deferred
Also spelled: early redemption, early withdrwal, early withdrawl