What are the tax implications of withdrawing funds from my retirement plan?

The tax implications of withdrawing funds from your retirement plan depend on the type of plan you have. Generally, traditional retirement plans, such as 401(k)s and traditional IRAs, are funded with pre-tax contributions, and withdrawals are subject to ordinary income tax. Early withdrawals before the age of 59½ may incur a 10% penalty tax, unless an exception applies. Alternatively, Roth retirement plans are funded with after-tax contributions, and qualified withdrawals are generally tax-free. Roth IRAs also have some early withdrawal exceptions. It is important to consult with a tax professional or financial advisor to understand the specific tax implications of withdrawing funds from your retirement plan based on your individual circumstances.