U.S. citizens who are drawing down on their workplace retirement account before retirement are exposing themselves to a complicated array of tax penalties, fees and other charges, reports Forbes’ Bill Singer on Broke and Broker Blog.

In addition, tapping into defined contribution savings plans leads to long-term damage to retirement savings.

Using savings meant to be used later in life as all-purpose funds prevents compounding from taking place, which is damaging to retirement planning.

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