Yes - you're right - I misspoke. The penalty is 10%. They withhold 20% supposedly to cover the tax bill as well, but in my case, it didn't even come close because it kicked me up into a higher tax bracket. I would not have pulled the funds out if I had known the kind of tax bill I would be hit with. I was assuming 20% was the worst case scenario. Probably should have known better since I have a master's in tax lol.