The 10% penalty imposed on premature withdrawals from qualified retirement plans is intended to discourage participants from withdrawing funds before retirement.

Name: The 10% penalty imposed on premature withdrawals from qualified retirement plans is intended to discourage participants from withdrawing funds before retirement.
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The 10% penalty is a deterrent for early withdrawals and encourages participants to keep their funds invested in the retirement plan until retirement age.

The 10% Penalty Imposed on Premature Withdrawals from Qualified Retirement