·Today, I was quoted on not always maxing out retirement plans due to potential 10% early withdrawal penalty before age 59.5,

Sometimes, I have clients forget maxing out their 401(k)s is not beneficial when they max have a house purchase or college tuition come up in a few short years that would require them to dip into retirement funds which could be subject to a 10% early withdrawal penalty.

Also retirement funds are taxed as ordinary income. Saving in a taxable account and getting capital gains tax treatment may be beneficial.

Dow Jones Market Watch December 18, 2024. https://www.marketwatch.com/story/its-the-worst-tax-deal-in-america-but-you-still-have-time-to-fix-it-heres-how-809a97d7?mod=home-page