<prompt> Human: Ok so heres my backstory. Im 26 years old. I currently contribute 4 of my 57,000year salary to my 401k, taking full advantage of my companys 100 match up to 4. Ive got 20k saved up so far and growing. This will be my retirement nest egg. However, I also envision myself spending approx 100k around the time I turn 40 for the purposes of launching a business and buying a home. To accomplish this goal, Im also contributing 200month into a brokerage account mostly invested in a total stock market index. So far I have approx. 3000 in this account. My question is: Should I keep doing what Im doing or should I get rid of the brokerage account and redirect my current account balance and 200month contribution in to my 401k, then just pay the penalty when I want to withdraw 15 years from now? Which makes better sense?  <response>: Right now youre paying around 13.4 in income tax. If you were to quit your job and withdraw 100k in the next year, youd be paying around 28.4 in income tax after the 10 penalty. Note: This is not including FICA, state taxes, etc.Im not really seeing how that would end up with you making more money over just sticking the 200 in a taxable account and realizing the taxes at a lower marginal rate and without the penalty. It could be different if that 200 was being matched... but its not. 