I have been visited by two individuals this past week who wanted me to look into their tax issues. Both had similar issues and were caught by surprise when they owed taxes, but in short order, I was able to give them the information they were lacking, although it was not the answers they sought.

Both individuals had taken early withdrawals from their retirement account in order to make necessary payments on other needs. When they took these early withdrawals, there was income tax withheld and they thought they would be covered, however, as I explained to them, if a withdrawal is taken prior to the employee separating from service (for 401(k)s and similar) or prior to the taxpayer being 59 years old, there is an additional 10% penalty tax imposed.
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Although I could not help them because the distributions had already taken place, I thought I would remind the world that there are penalties and taxes you need to be aware of, should you start looking at your retirement account too soon.