Fidelity and AARP have warned about the potential tax penalties for 401(k) plans and Individual Retirement Accounts (IRAs), which involve a 10% federal penalty tax on top of regular income tax for withdrawals from these accounts. Financial services firm Fidelity highlighted that contributions to Roth IRAs can be accessed tax-free and penalty-free at any time, and if you withdraw more than your contributions, you may be subject to taxes and penalties. The company also highlighted the importance of avoiding emotional panic during a down market. Recent downward trends in stock values have led some Americans to become cautious about their investments, but AARP warns against making knee-jerk decisions regarding your 401(K) when the market plunges.