HomeDefinitionsCompareDebt Penalty taxThe financial definition for Penalty tax:A federal tax that can be applied if a plan holder does not meet certain requirements when making withdrawals from a tax-advantaged retirement plan (for instance, if the plan holder has not reached age 59-1/2). This penalty tax is owed in addition to any income taxes due. Similar MatchesEarly withdrawal penaltyEarly withdrawal penaltyPenalty paid by the holder of a fixed-term investment penalizing an investor who withdraws money before the agreed-upon maturity date. Marriage penaltyMarriage penaltyA tax that has the effect of penalizing a married couple because they pay more tax on a joint tax return than they would if they file tax returns individually. Penalty clausePenalty clauseA clause found in contract agreements that provides for a penalty in the event of default. Further SuggestionsPrepayment penaltyClick to compare definitions of Penalty tax Click to view definitions beginning pe |