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The median annual salary for a paralegal is $59,200, according to the latest figures from the Bureau of Labor Statistics. But depending on where you live, your area of expertise, and your level of experience, you could make upwards of $121,110 or more a year.

A career as a paralegal can be a fulfilling choice for those interested in the law. While the job can be demanding and the hours sometimes long, it can also provide professional satisfaction and a chance to help others in your community.

What Are Paralegals?

A paralegal works under the supervision of a lawyer and performs supportive legal tasks. Administrative duties require a knowledge of the law, but you don’t have to have a law degree or a law license.

Paralegals are often responsible for the following tasks:

•   Draft motions and pleadings for an attorney and file it with the court.

•   Research cases. Paralegals research current and old legal cases to help discover relative precedents and understand past rulings.

•   Interview clients and witnesses involved in a case.

•   Communicate with clients throughout the phases of the legal process.

•   Collect documents, client testimonials, and expert witnesses on behalf of the attorney.

•   Draft reports and legal documents for cases.

•   Factcheck legal filings and documents for accuracy.

•   Gather supporting documents that a lawyer may use or file with the court.

•   Coordinate cases, including their schedules and deadlines.

•   Assist and support lawyers during trials.

Being a paralegal is not a job for antisocial people, as it typically involves being a liaison between clients, attorneys, investigators, witnesses, and court officials.


💡 Quick Tip: We love a good spreadsheet, but not everyone feels the same. An online budget planner can give you the same insight into your budgeting and spending at a glance, without the extra effort.

How Much Do Starting Paralegals Make?

Whether they’re fresh out of school or have been working for several years, paralegals can be paid hourly or earn a yearly salary. A typical rate for a brand-new paralegal is $19.20 an hour or $55,332 a year.

An entry-level salary or hourly rate for a paralegal varies by work environment. Smaller firms and nonprofits tend to pay less, while bigger corporate law firms may offer more competitive pay.

Paralegals can specialize in certain areas, including litigation, real estate, divorce, intellectual property, immigration, and bankruptcy. Honing your skills in a particular area of the law could help position you for higher-paying opportunities.

No matter the size of your salary, it helps to keep a close eye on your finances and the progress you’re making toward your financial goals. Online tools like a money tracker app can help you create a budget, monitor your credit score, and more.

Recommended: Is a $100,000 Salary Good?

What Is the Average Paralegal Salary by State?

Like most jobs, the amount of money you can earn as a paralegal is impacted by geography. As the chart below shows, salaries in this field can fluctuate from state to state.

The Median Salary by State for a Paralegal in 2022

State	Median Salary
Alabama	$48,620
Alaska	$61,490
Arizona	$59,050
Arkansas	n/a
California	$69,790
Colorado	$65,010
Connecticut	$63,490
Delaware	$59,660
District of Columbia	$87,610
Florida	$52,190
Georgia	$51,420
Hawaii	$58,630
Idaho	$48,500
Illinois	$60,370
Indiana	$47,710
Iowa	$52,660
Kansas	$48,490
Kentucky	$48,810
Louisiana	$50,310
Maine	$54,710
Maryland	$58,760
Massachusetts	$63,360
Michigan	$58,780
Minnesota	$60,380
Mississippi	$43,590
Missouri	$55,410
Montana	$55,270
Nebraska	$50,610
Nevada	$61,180
New Hampshire	$50,960
New Jersey	$61,040
New Mexico	$48,320
New York	$62,730
North Carolina	$51,340
North Dakota	$48,740
Ohio	$50,580
Oklahoma	$48,490
Oregon	$63,980
Pennsylvania	$62,080
Rhode Island	n/a
South Carolina	$48,190
South Dakota	$54,100
Tennessee	$48,420
Texas	$56,310
Utah	$52,820
Vermont	$60,560
Virginia	$59,500
Washington	$69,260
West Virginia	$47,990
Wisconsin	$49,970
Wyoming	$52,000

Source: Bureau of Labor Statistics

Paralegal Job Considerations for Pay and Benefits

Thinking about becoming a paralegal? Consider the following:

•   Areas of interest. Paralegals can work in any number of specialties: corporate law, patent law, health care, and more. Thinking about which field best suits your interest can help guide your training and job search.

•   Career goals. Is career advancement and an annual pay raise important to you? Is having a flexible schedule a priority? Discuss your options with a hiring manager before accepting a position.

•   Benefits. Many full-time and part-time paralegals are eligible for benefits, including, health, vision, and dental insurance, a 401(k), tuition assistance, and paid time off.

•   Time and energy commitment. Some areas of law, like litigation, are more stressful than others and may require longer working hours.

Recommended: How to Create a Budget in 5 Steps

Pros and Cons of Being a Paralegal

Ultimately, deciding if becoming a paralegal is a good fit depends on your interests, skills, and goals. Like any profession, working as a paralegal has its positives and negatives:

Pros:

•   Salary. Paralegals stand to earn excellent pay, especially if they train for specific roles. A courtroom presentation specialist, for instance, may earn between $67,500 and $125,000 a year.

•   Job outlook. Paralegals are in high demand. According to the Bureau of Labor Statistics, jobs in the field are projected to grow 4% from 2022 to 2032.

•   Variety of work. On any given day, a paralegal may juggle a number of cases and assorted tasks — from paperwork to writing motions to speaking with witnesses.

•   Stimulating work. Creative problem-solving skills and analytical reasoning are put to use every day as a paralegal. The job also requires staying up-to-date on new and changing laws.

•   No law school. Becoming a paralegal requires much less education than is demanded of lawyers. A bachelor’s degree in any field and completing an accredited paralegal program are often all that’s needed.

Cons:

•   Long hours. Paralegals often work more than the traditional 40-hour week. As deadlines and court dates approach, you may find yourself working late nights and weekends.

•   High stress. In addition to assisting lawyers with complex legal issues, paralegals may work closely with demanding clients.

•   Lack of autonomy. When you’re a paralegal, you work directly under and are supervised by a licensed attorney. And since you are not certificated to practice law, you cannot advise your clients on legal matters or represent them in court.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

While the hours can be long and the environment sometimes stressful, being a paralegal can provide you with an opportunity to help others, stay intellectually stimulated, and earn a good salary. While the average paralegal salary is around $59,200 a year, you may be able to earn more depending on your experience, specialty, and location.

FAQ

What is the highest-paying paralegal job?

One of the highest-paying paralegal jobs is a courtroom presentation specialist, which typically pays between $67,500 and $125,000 a year.

Do Paralegals make 100k a year?

Depending on how much experience you have, your area of expertise, and your employer, you could make $100,000 or more a year as a paralegal.

How much do paralegals make starting out?

When they’re just starting out, a paralegal earns an average of $19.20 an hour or $55,332 a year.

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Photo credit: iStock/sturti

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

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Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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A personal trainer earns an average of $67,012 a year, according to the latest data from Salary.com. However, salaries typically fall somewhere between $48,347 and $82,320.

How much you can make as a personal trainer depends on several factors, including where you live, who you work for, your training experience, and your areas of expertise. Let’s unpack this.

What Are Personal Trainers?

A personal trainer develops customized exercise programs for clients based on individual skill levels, health goals, physical limitations, and other considerations. These professionals work with clients of all ages and skill levels to improve strength, flexibility, and endurance; complete workouts safely and without injury; support them on their weight loss journey; and more.

Trainers are often paid hourly, but they may earn a yearly salary if they work for a gym or high-end client. How much money a personal trainer makes depends on the range of services and level of attention they provide — in general, the more, the better.

It also helps if you have good people skills, as you’ll be working closely with clients. (Not much of a people person? You may want to look into jobs for introverts instead.)


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Personal Trainers Make an Hour?

The average entry-level wage for a personal trainer in the United States is $29 per hour, or $61,104 a year, according to ZipRecruiter. But depending on a host of factors, personal trainers can earn anywhere from $11.06 to $51.92 an hour.

So is it possible to make $100,000 a year or more as a personal trainer? Short answer: yes. A six-figure income may be attainable once you gain enough experience and establish a steady client base. But keep in mind that those things often take time to develop.

Recommended: What Is Competitive Pay?

What Is a Personal Trainer’s Yearly Salary by State?

Location can play a major factor in a personal trainer’s income. A professional who’s established in their career may earn an average of $67,012, but as the chart below shows, take-home pay can vary significantly from state to state.

The Average Personal Trainer Salary by State

State	Median Salary for a Personal Trainer
Alabama	$53,023
Alaska	$59,756
Arizona	$54,514
Arkansas	$45,525
California	$61,037
Colorado	$57,837
Connecticut	$53,361
Delaware	$66,789
Florida	$43,714
Georgia	$49,394
Hawaii	$57,813
Idaho	$58,505
Illinois	$53,350
Indiana	$55,666
Iowa	$53,072
Kansas	$49,804
Kentucky	$47,885
Louisiana	$48,567
Maine	$59,455
Maryland	$64,637
Massachusetts	$60,291
Michigan	$47,929
Minnesota	$55,627
Mississippi	$52,898
Missouri	$51,521
Montana	$53,693
Nebraska	$63,126
Nevada	$56,502
New Hampshire	$57,587
New Jersey	$58,470
New Mexico	$55,489
New York	$64,556
North Carolina	$49,937
North Dakota	$58,914
Ohio	$54,118
Oklahoma	$61,134
Oregon	$58,939
Pennsylvania	$59,132
Rhode Island	$54,591
South Carolina	$50,988
South Dakota	$55,680
Tennessee	$51,669
Texas	$58,217
Utah	$51,630
Vermont	$63,225
Virginia	$65,639
Washington	$71,304
West Virginia	$45,668
Wisconsin	$57,762
Wyoming	$56,523

Source: ZipRecruiter

Recommended: The Highest-Paying Jobs in Every State

Personal Trainer Job Considerations for Pay and Benefits

When you’re just starting out as a personal trainer, there are many factors that may influence the direction of your career. For instance, working at an established commercial gym can offer an opportunity to gain experience, build up a client network, and receive job benefits.

If you’re more of a self-starter and prefer a degree of independence, working as a self-employed personal trainer might be the better fit. You’ll have the ability to set your own hours and hourly rate; however, you’ll also have to pay for health benefits and set money aside for retirement.

Here are some questions to ask yourself when starting a career as a personal trainer:

•   How many hours are you willing to work?

•   Would you rather work for someone else or be your own boss?

•   Do you need health insurance benefits?

•   Where do you see yourself in five to 10 years?

•   What type of clients do you want (ex. senior citizens, athletes)?

•   Are you willing to commute or relocate?

•   What additional certifications might you need?

•   What are your financial goals?

Establish what you need to earn as a personal trainer in order to cover your expenses and maintain the lifestyle you want. It can help to sit down and create a budget.

As your personal trainer career gets going, you can lean on financial tools like a money tracker app to help you monitor your spending and saving.

Tips to Increase a Personal Trainer’s Salary

Clients can come and go for a number of reasons, but there are some things you can do as a personal trainer to keep the ones you have and attract new ones. Here are some strategies to consider:

•   Listen to your clients, and be willing to adapt to their needs.

•   Sharpen your motivational skills. Pay attention to other successful trainers and how they inspire their clients.

•   Be empathetic. Many clients may struggle during their workouts, both physically and psychologically. Empathy can go a long way in maintaining healthy client relations.

•   Go where you’re needed. Investigate niches where your expertise can be of use, be it an elderly care center, health center, or a new neighborhood gym.

•   Network and market yourself. Chat up members at your gym and discuss their fitness goals. You can also promote your own fitness journey and methods on social media.

•   Earn new certifications. Get certified in CPR, yoga, Pilates, and nutrition. The more you know, the more in-demand you may be.

Pros and Cons of Being a Personal Trainer

As with any job, there are pluses and minuses to working as a personal trainer. Here are some of the benefits and challenges of the field:

Pros:

•   Flexible hours. You can often schedule clients when you want to.

•   Professional control. You’re able to build up your business through marketing and networking, adding clients as you raise your earning goals.

•   Staying physically fit. You’ll have to practice what you preach. Staying in shape is a job requirement.

•   Personal satisfaction, especially when you help a client meet their goals.

Cons:

•   Fluctuating income/job security. There’s no way to predict how many clients you may have month-to-month or year-to-year.

•   Lack of benefits. Many personal trainers work for themselves and have to pay for their own health and dental insurance, plus save for retirement.

•   Nontraditional work hours. Although you have the ability to make your own schedule, most of your working clients will likely request early morning, evening, or weekend sessions.

•   Shorter career lifespan. Even the most in-shape trainer ages, and there may come a day where you struggle to physically keep up with your clients.

💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

The Takeaway

A personal trainer’s salary can rise and fall with the ebb and flow of clients, but there is also no limit to the amount of money you can make. Whether you are working with a few dedicated clients or creating your own global fitness brand, being a personal trainer can be a great way to earn a salary while keeping yourself and your finance goals in shape.

FAQ

What is the highest paying personal trainer job?

Personal trainers to wealthy clients and celebrities typically command lucrative salaries. The most popular fitness influencers on TikTok and Instagram, for example, can make over $1 million a year.

Do personal trainers make $100k a year?

A well-established personal trainer can make $100,000 a year with experience, marketing savvy, good time management skills, and a loyal client base.

How much do personal trainers make starting out?

The average starting wage for a personal trainer in the United States is $29 per hour, or $61,104 a year.

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Photo credit: iStock/Drazen Zigic

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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If you’re looking for a career that makes a lot of money, you might want to start your search in the health and medical field. Healthcare jobs are the highest-paid jobs in the U.S., and overall employment in this sector is expected to grow faster than the average for all occupations over the next eight years, according to the U.S. Bureau of Labor Statistics (BLS).

Outside of healthcare, professional athletes and corporate chief executive officers (CEOs) are among the highest-paid professions. Three other fields that also made the top 25: Airline pilots, computer/information systems managers, and financial managers.

Read on for a snapshot of the highest-paying jobs across the U.S., followed by a listing of the best-paying occupations by state.

25 Highest Paying Careers in the U.S.

To compile this list of highest-paying jobs, we reviewed data from BLS’s most recent National Occupational Employment and Wage Estimates report (May 2022). We also used government data to cite the minimum education requirements, projected growth, and which industries provide employment for each occupation. For more job description details, we tapped the Occupational Information Network (O*NET).

Here’s a look of the highest-paid jobs in the U.S., ranked from highest average salary to lowest.

1. Cardiologist

Cardiologists diagnose, treat, manage, and prevent diseases or conditions of the cardiovascular system. They may further subspecialize in interventional procedures (e.g., balloon angioplasty and stent placement), echocardiography, or electrophysiology.

Average Salary

$421,330

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Administer emergency cardiac care for life-threatening heart problems.

•   Advise patients about diet, activity, and disease prevention.

•   Calculate valve areas from blood flow velocity measurements.

•   Compare measurements of heart wall thickness and chamber sizes to standards to identify abnormalities using echocardiogram results.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Management of companies and enterprises

2. Orthopedic Surgeon

Orthopedic surgeons diagnose and perform surgery to treat and prevent rheumatic and other diseases in the musculoskeletal system.

Average Salary

$371,400

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.

•   Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes related to musculoskeletal injuries and diseases.

•   Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care Centers

•   Colleges, universities, and professional Schools

3. Pediatric Surgeon

Pediatrics surgeons diagnose and perform surgery to treat fetal abnormalities and birth defects, diseases, and injuries in fetuses, premature and newborn infants, children, and adolescents.

Average Salary

$362,970

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Analyze patient’s medical history, physical condition, and examination results to verify operation’s necessity and to determine best procedure.

•   Conduct research to develop and test surgical techniques that can improve operating procedures and outcomes.

•   Consult with patient’s other medical care specialists to determine if surgery is necessary.

•   Describe preoperative and postoperative treatments and procedures to parents or guardians of the patient.

•   Direct and coordinate activities of nurses, assistants, specialists, residents, and other medical staff.

Projected growth (2022-2032)

Little or no change

Top Industries

•   Hospitals

•   Offices of physicians

4. Athletes and Sports Competitors

Athletes and sports competitors compete in athletic events.

Average Salary

$358,080

Typical Entry-Level Education

No formal educational credential

Primary Duties

•   Participate in athletic events or competitive sports, according to established rules and regulations.

•   Assess performance following athletic competition, identifying strengths and weaknesses and making adjustments to improve future performance.

•   Attend scheduled practice or training sessions.

•   Maintain optimum physical fitness levels by training regularly, following nutrition plans, or consulting with health professionals.

Projected growth (2022-2032)

Much faster than average (9% or higher)

Top Industries

•   Spectator sports

•   Other amusement and recreation industries

•   Promoters of performing arts, sports, and similar events

•   Colleges, universities, and professional schools

5. Surgeons

Surgeons operate on patients to treat injuries, such as broken bones; diseases, such as cancerous tumors; and deformities.

Average Salary

$347,870

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

Varies with specialty

Projected growth (2022-2032)

3% (as fast as average)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Colleges, universities, and professional schools

6. Radiologists

Radiologists diagnose and treat diseases and injuries using medical imaging techniques, such as x rays, magnetic resonance imaging (MRI), nuclear medicine, and ultrasounds. They may also perform minimally invasive medical procedures and tests.

Average Salary

$329,080

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Perform or interpret the outcomes of diagnostic imaging procedures including magnetic resonance imaging (MRI), computer tomography (CT), positron emission tomography (PET), nuclear cardiology treadmill studies, mammography, or ultrasound.

•   Prepare comprehensive interpretive reports of findings.

•   Communicate examination results or diagnostic information to referring physicians, patients, or families.

•   Obtain patients’ histories from electronic records, patient interviews, dictated reports, or by communicating with referring clinicians.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Medical and diagnostic laboratories

•   Outpatient care centers

•   Colleges, universities, and professional schools

7. Dermatologists

Dermatologists diagnose and treat diseases relating to the skin, hair, and nails. They may perform both medical and dermatological surgery functions.

Average Salary

$327,650

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Conduct complete skin examinations.

•   Diagnose and treat pigmented lesions, such as common acquired nevi, congenital nevi, dysplastic nevi, Spitz nevi, blue nevi, or melanoma.

•   Perform incisional biopsies to diagnose melanoma.

•   Perform skin surgery to improve appearance, make early diagnoses, or control diseases such as skin cancer.

•   Counsel patients on topics such as the need for annual dermatologic screenings, sun protection, skin cancer awareness, or skin and lymph node self-examinations.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Outpatient care centers

•   Offices of other health practitioners

•   Medical and diagnostic laboratories

•   Personal care services

8. Emergency Medicine Physicians

Emergency medicine physicians make immediate medical decisions and act to prevent death or further disability. They provide immediate recognition, evaluation, care, stabilization, and disposition of patients. They may also direct emergency medical staff in an emergency department.

Average Salary

$316,600

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Analyze records, examination information, or test results to diagnose medical conditions.

•   Assess patients’ pain levels or sedation requirements.

•   Collect and record patient information, such as medical history or examination results, in electronic or handwritten medical records.

•   Communicate likely outcomes of medical diseases or traumatic conditions to patients or their representatives.

•   Conduct primary patient assessments that include information from prior medical care.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   General medical and surgical hospitals

•   Outpatient care centers

•   Colleges, universities, and professional schools

•   Management of companies and enterprises

9. Oral and Maxillofacial Surgeons

Oral and maxillofacial surgeons perform surgery and related procedures on the hard and soft tissues of the oral and maxillofacial regions to treat diseases, injuries, or defects. They also diagnose problems of the oral and maxillofacial regions, and may perform surgery to improve function or appearance.

Average Salary

​​$309,410

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Administer general and local anesthetics.

•   Collaborate with other professionals, such as restorative dentists and orthodontists, to plan treatment.

•   Evaluate the position of the wisdom teeth to determine whether problems exist currently or might occur in the future.

•   Perform surgery to prepare the mouth for dental implants and to aid in the regeneration of deficient bone and gum tissues.

•   Remove impacted, damaged, and non-restorable teeth.

Projected growth (2022-2032)

Faster than average (5% to 8%)

Top Industries

•   Offices of dentists

•   Hospitals

•   Outpatient care centers

10. Anesthesiologist

Anesthesiologists administer anesthetics and analgesics for pain management prior to, during, or after surgery.

Average Salary

$302,970

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Examine patient, obtain medical history, and use diagnostic tests to determine risk during surgical, obstetrical, and other medical procedures.

•   Administer anesthetic or sedation during medical procedures, using local, intravenous, spinal, or caudal methods.

•   Monitor patient before, during, and after anesthesia and counteract adverse reactions or complications.

•   Record type and amount of anesthesia and patient condition throughout procedure.

•   Provide and maintain life support and airway management and help prepare patients for emergency surgery.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

[bls]

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Colleges, universities, and professional schools

•   Offices of other health practitioners

11. Obstetricians and Gynecologists

Obstetricians and gynecologists provide medical care related to pregnancy or childbirth. They diagnose, treat, and help prevent diseases of women, particularly those affecting the reproductive system. They may also provide general care to women, and perform both medical and gynecological surgery functions.

Average Salary

$277,320

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Treat diseases of female organs.

•   Care for and treat women during prenatal, natal, and postnatal periods.

•   Analyze records, reports, test results, or examination information to diagnose medical condition of patient.

•   Perform cesarean sections or other surgical procedures as needed to preserve patients’ health and deliver babies safely.

•   Collect, record, and maintain patient information, such as medical histories, reports, or examination results.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Colleges, universities, and professional schools

12. Ophthalmologists

Ophthalmologists diagnose and perform surgery to treat and help prevent disorders and diseases of the eye. They may also provide vision services for treatment including glasses and contacts.

Average Salary

$265,450

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Perform comprehensive examinations of the visual system to determine the nature or extent of ocular disorders.

•   Diagnose or treat injuries, disorders, or diseases of the eye and eye structures including the cornea, sclera, conjunctiva, or eyelids.

•   Provide or direct the provision of postoperative care.

•   Develop or implement plans and procedures for ophthalmologic services.

•   Prescribe or administer topical or systemic medications to treat ophthalmic conditions and to manage pain.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Offices of other health practitioners

•   Outpatient care centers

•   Colleges, universities, and professional schools

13. Neurologists

Neurologists diagnose, manage, and treat disorders and diseases of the brain, spinal cord, and peripheral nerves, with a primarily nonsurgical focus.

Average Salary

$255,510

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Interview patients to obtain information, such as complaints, symptoms, medical histories, and family histories.

•   Examine patients to obtain information about functional status of areas, such as vision, physical strength, coordination, reflexes, sensations, language skills, cognitive abilities, and mental status.

•   Perform or interpret the outcomes of procedures or diagnostic tests, such as lumbar punctures, electroencephalography, electromyography, and nerve conduction velocity tests.

•   Order or interpret results of laboratory analyses of patients’ blood or cerebrospinal fluid.

•   Diagnose neurological conditions based on interpretation of examination findings, histories, or test results.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Colleges, universities, and professional schools

14. Pathologists

Pathologists diagnose diseases and conduct lab tests using organs, body tissues, and fluids. Includes medical examiners.

Average Salary

$252,850

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Examine microscopic samples to identify diseases or other abnormalities.

•   Diagnose diseases or study medical conditions, using techniques such as gross pathology, histology, cytology, cytopathology, clinical chemistry, immunology, flow cytometry, or molecular biology.

•   Write pathology reports summarizing analyses, results, and conclusions.

•   Communicate pathologic findings to surgeons or other physicians.

•   Identify the etiology, pathogenesis, morphological change, and clinical significance of diseases.

Projected growth (2022-2032)

Faster than average (5% to 8%)

Top Industries

•   Offices of physicians

•   Medical and diagnostic laboratories

•   Colleges, universities, and professional schools

•   Local government, excluding schools and hospitals

•   Scientific research and development services

15. Psychiatrists

Psychiatrists diagnose, treat, and help prevent mental disorders.

Average Salary

$247,350

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Prescribe, direct, or administer psychotherapeutic treatments or medications to treat mental, emotional, or behavioral disorders.

•   Gather and maintain patient information and records, including social or medical history obtained from patients, relatives, or other professionals.

•   Design individualized care plans, using a variety of treatments.

•   Collaborate with physicians, psychologists, social workers, psychiatric nurses, or other professionals to discuss treatment plans and progress.

•   Analyze and evaluate patient data or test findings to diagnose nature or extent of mental disorder.

Projected growth (2022-2032)

Faster than average (5% to 8%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   State government

16. Chief Executives

Chief executives determine and formulate policies and provide overall direction of companies or private and public sector organizations within guidelines set up by a board of directors or similar governing body. They plan, direct, or coordinate operational activities at the highest level of management with the help of subordinate executives and staff managers.

Average Salary

$246,440

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•   Direct or coordinate an organization’s financial or budget activities to fund operations, maximize investments, or increase efficiency.

•   Confer with board members, organization officials, or staff members to discuss issues, coordinate activities, or resolve problems.

•   Direct, plan, or implement policies, objectives, or activities of organizations or businesses to ensure continuing operations, to maximize returns on investments, or to increase productivity.

•   Prepare or present reports concerning activities, expenses, budgets, government statutes or rulings, or other items affecting businesses or program services.

Projected growth (2022-2032)

Decline (-2% or lower)

Top Industries

•   Local and state government

•   Management of companies and enterprises

•   Elementary and secondary schools

•   Computer systems design and related services

17. Dentists

Dentists examine, diagnose, and treat diseases, injuries, and malformations of teeth and gums. They treat diseases of nerve, pulp, and other dental tissues affecting oral hygiene and retention of teeth. They may also fit dental appliances or provide preventive care.

Average Salary

$233,430

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Examine teeth, gums, and related tissues, using dental instruments, x-rays, or other diagnostic equipment, to evaluate dental health, diagnose diseases or abnormalities, and plan appropriate treatments.

•   Administer anesthetics to limit the amount of pain experienced by patients during procedures.

•   Use dental air turbines, hand instruments, dental appliances, or surgical implements.

•   Formulate plan of treatment for patient’s teeth and mouth tissue.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of dentists

•   Federal executive branch

•   Hospitals

•   Outpatient care centers

18. Airline Pilots, Copilots, and Flight Engineers

Airline pilots, copilots, and flight engineers pilot and navigate the flight of fixed-wing aircraft, usually on scheduled air carrier routes, for the transport of passengers and cargo. This job requires a Federal Air Transport certificate and rating for the specific aircraft type used.

Average Salary

$225,740

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•   Start engines, operate controls, and pilot airplanes to transport passengers, mail, or freight, adhering to flight plans, regulations, and procedures.

•   Work as part of a flight team with other crew members, especially during takeoffs and landings.

•   Respond to and report in-flight emergencies and malfunctions.

•   Inspect aircraft for defects and malfunctions, according to pre-flight checklists.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Scheduled air transportation

•   Couriers and express delivery services

•   Federal executive branch

•   Support activities for air transportation

•   Management of companies and enterprises

19. General Internal Medicine Physicians

General internal medicine physicians diagnose and provide nonsurgical treatment for a wide range of diseases and injuries of internal organ systems. They provide care mainly for adults and adolescents, and are based primarily in an outpatient care setting.

Average Salary

$225,270

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Treat internal disorders, such as hypertension, heart disease, diabetes, or problems of the lung, brain, kidney, or gastrointestinal tract.

•   Analyze records, reports, test results, or examination information to diagnose medical condition of patient.

•   Prescribe or administer medication, therapy, and other specialized medical care to treat or prevent illness, disease, or injury.

•   Manage and treat common health problems, such as infections, influenza or pneumonia, as well as serious, chronic, and complex illnesses, in adolescents, adults, and the elderly.

•   Provide and manage long-term, comprehensive medical care, including diagnosis and nonsurgical treatment of diseases, for adult patients in an office or hospital.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Colleges, universities, and professional schools

•   Outpatient care centers

20. Family Medicine Physicians

Family medicine physicians diagnose, treat, and provide preventive care to individuals and families across the lifespan. They may refer patients to specialists when needed for further diagnosis or treatment.

Average Salary

$224,460

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury.

•   Order, perform, and interpret tests and analyze records, reports, and examination information to diagnose patients’ condition.

•   Collect, record, and maintain patient information, such as medical history, reports, or examination results.

•   Monitor patients’ conditions and progress and reevaluate treatments as necessary.

•   Explain procedures and discuss test results or prescribed treatments with patients.

Projected growth (2022-2032)

Average (2% to 4%)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Colleges, universities, and professional schools

•   State government

21. Orthodontists

Orthodontists examine, diagnose, and treat dental malocclusions and oral cavity anomalies. They design and fabricate appliances to realign teeth and jaws to produce and maintain normal function and to improve appearance.

Average Salary

$216,320

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Examine patients to assess abnormalities of jaw development, tooth position, and other dental-facial structures.

•   Study diagnostic records, such as medical or dental histories, plaster models of the teeth, photos of a patient’s face and teeth, and X-rays, to develop patient treatment plans.

•   Fit dental appliances in patients’ mouths to alter the position and relationship of teeth and jaws or to realign teeth.

•   Adjust dental appliances to produce and maintain normal function.

Projected growth (2022-2032)

Faster than average (5% to 8%)

Top Industries

•   Offices of dentists

•   Hospitals

22. Nurse Anesthetists

Nurse anesthetists administer anesthesia, monitor patient’s vital signs, and oversee patient recovery from anesthesia. They assist anesthesiologists, surgeons, other physicians, or dentists. They must be registered nurses who have specialized graduate education.

Average Salary

$205,770

Typical Entry-Level Education

Master’s degree

Primary Duties

•   Manage patients’ airway or pulmonary status, using techniques such as endotracheal intubation, mechanical ventilation, pharmacological support, respiratory therapy, and extubation.

•   Respond to emergency situations by providing airway management, administering emergency fluids or drugs, or using basic or advanced cardiac life support techniques.

•   Monitor patients’ responses, including skin color, pupil dilation, pulse, heart rate, blood pressure, respiration, ventilation, or urine output, using invasive and noninvasive techniques.

•   Select, order, or administer anesthetics, adjuvant drugs, accessory drugs, fluids or blood products as necessary.

•   Select, prepare, or use equipment, monitors, supplies, or drugs for the administration of anesthetics.

Projected growth (2022-2032)

Much faster than average (9% or higher)

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Offices of other health practitioners

•   Colleges, universities, and professional schools

23. Pediatricians

Pediatricians diagnose, treat, and help prevent diseases and injuries in children. They also refer patients to specialists for further diagnosis or treatment, as needed.

Average Salary

$203,240

Typical Entry-Level Education

Doctoral or professional degree

Primary Duties

•   Prescribe or administer treatment, therapy, medication, vaccination, and other specialized medical care to treat or prevent illness, disease, or injury in infants and children.

•   Examine children regularly to assess their growth and development.

•   Treat children who have minor illnesses, acute and chronic health problems, and growth and development concerns.

•   Examine patients or order, perform, and interpret diagnostic tests to obtain information on medical condition and determine diagnosis.

Projected growth (2022-2032)

Little or no change

Top Industries

•   Offices of physicians

•   Hospitals

•   Outpatient care centers

•   Colleges, universities, and professional Schools

24. Computer and Information Systems Managers

Computer and information systems managers plan, direct, or coordinate activities in such fields as electronic data processing, information systems, systems analysis, and computer programming

Average Salary

$173,670

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•   Direct daily operations of department, analyzing workflow, establishing priorities, developing standards and setting deadlines.

•   Meet with department heads, managers, supervisors, vendors, and others, to solicit cooperation and resolve problems.

•   Review project plans to plan and coordinate project activity.

•   Assign and review the work of systems analysts, programmers, and other computer-related workers.

•   Provide users with technical support for computer problems.

Projected growth (2022-2032)

Much faster than average (9% or higher)

Top Industries

•   Computer systems design and related services

•   Management of companies and enterprises

•   Software publishers

•   Management, scientific, and technical consulting services

•   Computing infrastructure providers, data processing, web hosting, and related services

25. Financial Managers

Financial managers plan, direct, or coordinate accounting, investing, banking, insurance, securities, and other financial activities of a branch, office, or department of an establishment.

Average Salary

$166,050

Typical Entry-Level Education

Bachelor’s degree

Primary Duties

•   Establish and maintain relationships with individual or business customers or provide assistance with problems these customers may encounter.

•   Oversee the flow of cash or financial instruments.

•   Plan, direct, or coordinate the activities of workers in branches, offices, or departments of establishments, such as branch banks, brokerage firms, risk and insurance departments, or credit departments.

•   Recruit staff members.

•   Evaluate data pertaining to costs to plan budgets.

Projected growth (2022-2032)

Much faster than average (9% or higher)

Top Industries

•   Credit intermediation and related activities

•   Management of companies and enterprises

•   Securities, commodity contracts, and other financial investments and related activities

•   Accounting, tax preparation, bookkeeping, and payroll services

•   Insurance carriers

Highest Paying Jobs by State

The top-paying occupations in the U.S. vary by location, so here’s a look at the best-paid jobs by state based on the BLS’s State Occupational Employment and Wage Estimates. This listing goes in alphabetical order and includes all 50 states plus the District of Columbia.

Alabama

Career: Cardiologist
Average Salary: $466,030

Alaska

Career: Surgeon
Average Salary: $311,440

Arizona

Career: Plastic Surgeon
Average Salary: $430,870

Arkansas

Career: Orthopedic Surgeon
Average Salary: $365,580

California

Career: Dermatologists
Average Salary: $371,450

Colorado

Career: Anesthesiologists
Average Salary: $384,860

Connecticut

Career: Dermatologists
Average Salary:$308,230

Delaware

Career: Orthopedic Surgeons
Average Salary: $509,820

District of Columbia

Career: Orthopedic Surgeons
Average Salary: $509,820

Florida

Career: Cardiologist
Average Salary: 428,810

Georgia

Career: Neurologists
Average Salary: $332,760

Hawaii

Career: Orthopedic Surgeon
Average Salary:$554,520

Idaho

Career: Cardiologists
Average Salary: $521,690

Illinois

Career: Dermatologists
Average Salary: $360,560

Indiana

Career: Athletes and Sports Competitors
Average Salary: $702,270

Iowa

Career: Dermatologists
Average Salary: $398,590

Kansas

Career: Surgeons
Average Salary: $374,300

Kentucky

Career: Orthopedic Surgeons
Average Salary: $410,760

Louisiana

Career: Surgeons
Average Salary: $534,920

Maine

Career: Surgeons
Average Salary: $450,330

Maryland

Career: Cardiologists
Average Salary: $456,280

Massachusetts

Career: Dermatologists
Average Salary: $414,270

Michigan

Career: Orthopedic Surgeons
Average Salary: $412,260

Minnesota

Career: Dermatologists
Average Salary: $514,330

Mississippi

Career: Surgeons
Average Salary: $362,430

Missouri

Career: Cardiologists
Average Salary: $370,910

Montana

Career: Surgeons
Average Salary: $435,940

Nebraska

Career: Anesthesiologists
Average Salary: $422,040

Nevada

Career: Dermatologists
Average Salary: $344,980

New Hampshire

Career: Orthopedic Surgeon
Average Salary: $425,620

New Jersey

Career: Chief Executives
Average Salary: $414,350

New Mexico

Career: Emergency Medicine Physicians
Average Salary: $332,590

New York

Career: Pediatric Surgeons
Average Salary: $415,810

North Carolina

Career: Surgeons
Average Salary: $429,010

North Dakota

Career: Psychiatrists
Average Salary: $390,140

Ohio

Career: Athletes and Sports Competitors
Average Salary: $648,120

Oklahoma

Career: Emergency Medicine Physicians
Average Salary: $312,940

Oregon

Career: Anesthesiologists
Average Salary: $395,060

Pennsylvania

Career: Cardiologists
Average Salary: $478,340

Rhode Island

Career: Radiologists
Average Salary: $343,450

South Carolina

Career: Ophthalmologists
Average Salary: $386,460

South Dakota

Career: Oral and Maxillofacial Surgeons
Average Salary: $347,390

Tennessee

Career: Surgeons
Average Salary: $324,550

Texas

Career: Cardiologists
Average Salary: $413,510

Utah

Career: Dermatologists
Average Salary: $402,230

Vermont

Career: Orthopedic Surgeon
Average Salary: $413,870

Virginia

Career: Neurologists
Average Salary: $368,650

Washington State

Career: Anesthesiologists
Average Salary: $419,950

Washington, D.C.

Career: Surgeons, Except Ophthalmologists
Average Salary: $286,160

West Virginia

Career: Surgeons
Average Salary: $365,560

Wisconsin

Career: Dermatologists
Average Salary: $455,200

Wyoming

Career: Family Medicine Physicians
Average Salary: $295,570

The Takeaway

Whether you look at the top-paying fields nationally or by state, healthcare professions dominate the list. However, a few other careers also consistently show up in the highest-paid job rankings, including professional athletes, chief executives, airline pilots, and computer/information systems managers.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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If you’re like many people who are socking away money in a 401(k) retirement plan (good work!), you probably know that early withdrawal of funds can take a financial toll. There are penalties that can be assessed, decreasing what you actually receive of those funds you saved.

But sometimes, life happens. Even though a 401(k) account is designed for retirement saving, you may need extra cash ASAP before you turn age 59½. Because money in your 401(k) account is not subject to federal income taxes until distribution, your 401(k) can lead to taxes as well as an early withdrawal penalty in this situation. Therefore, it may be worth exploring other options.

To answer the question, “what is the penalty for withdrawing from a 401(k)?” read on. You’ll learn:

•   How a 401(k) works

•   What is the 401(k) early withdrawal penalty

•   How you can access cash without using funds from your 401(k) account.

How Does a 401(k) Work?

A 401(k) is an account designed to hold money and investments for retirement. Why does it have such a funky name? Well, it’s named after a line in the tax code that gives the 401(k) its special taxation guidelines. It can be a reminder that rules regarding 401(k) accounts are set by the IRS and generally have to do with taxation.

Essentially, the IRS allows investors to stash a certain amount of money away each year for retirement, without having to pay income taxes on those contributions.

Currently, that contribution maximum amount is $23,000 per year, with additional catch-up contributions of up to $7,500 allowed for those 50 and older. Additionally, the investments within the account are allowed to grow tax-free.

401(k) participants can’t avoid paying income taxes forever, though. When retirees go to pull out money in retirement, they must pay income taxes on the 401(k) amount withdrawn.

So, while you have to pay income taxes eventually, the idea is that maybe you’ll pay a lower effective tax rate as a retired person than as a working person. (Although, none of this is guaranteed because we can’t predict future tax rates.)

The IRS classifies 59½ as the age where a person can begin withdrawing from their 401(k). Before this age and without an exception, it is not possible to do a 401(k) withdrawal without penalty.


💡 Quick Tip: Some lenders can release funds as quickly as the same day your loan is approved. SoFi personal loans offer same-day funding for qualified borrowers.

What is the Penalty for Withdrawing from a 401(k)?

When a 401(k) account holder withdraws money from a 401(k) before age 59½, the IRS may charge a 10% penalty in addition to the ordinary income taxes assessed on the amount.

Unqualified withdrawals from a 401(k) are considered taxable income. Then, the 10% penalty is assessed on top of that. This could result in a hefty penalty.

Is a 401(k) Withdrawal Without Penalty Possible?

There are some exceptions to the 401(k) early withdrawal penalty rule. For example, an exception may be made in such circumstances as:

•   A participant has a qualifying event such as a disability or medical expenses and must use 401(k) assets to make payments under a qualified domestic relations order

•   Has separated from service during or after the year they reached age 55

•   A distribution is made to a beneficiary after the death of the account owner.

Additionally, it may be possible to avoid the 401(k) withdrawal penalty through a method known as the Substantially Equal Periodic Payment (SEPP) rule. These are also called 72(t) distributions.

•   To do this, the account owner must agree to withdraw money according to a specific schedule as defined by the IRS.

•   The participant must do this for at least five years or until they have reached age 59½.

•   Under the 72(t) distribution, a participant will systematically withdraw the total balance of their 401(k). While this is technically an option in some instances, it does mean taking money away from retirement. Consider this while making your ultimate decision.

💡 Quick Tip: In a climate where interest rates are rising, you’re likely better off with a fixed interest rate than a variable rate, even though the variable rate is initially lower. On the flip side, if rates are falling, you may be better off with a variable interest rate.

Alternatives to an Early 401(k) Withdrawal

Because of the steep penalty involved, you may feel inclined to shop around for some alternatives to early 401(k) withdrawal.

Borrowing from Your 401(k)

Participants can consider taking a loan from their active 401(k). The money is removed from the account and charged a rate of interest, which is ultimately paid back into the account. The interest rate is generally one or two points higher than the prime interest rate set by the IRS, but it can vary.

While this loan may come with a competitive interest rate that is repaid to the borrower themself and not a bank, there are some significant downsides.

•   First, taking money from a 401(k) account removes that money from being invested in the market. A participant may miss out on the market’s upside and compound returns.

•   Though a 401(k) loan might seem like an easy option now, it could put a person’s savings for retirement at risk. It is easy to imagine a scenario where the loan does not get repaid. If the loan is not repaid, the IRS could levy the 10% penalty on the distributed funds.

•   Money that is repaid to a 401(k) is done with post-tax money. The money that is borrowed from the 401(k) would have been pre-tax money, so replacing it with money the borrower has already paid taxes on may make a 401(k) loan more expensive than it initially seems.

•   If a person were to leave their company before the loan is repaid, the loan would need to be repaid by the time you file your taxes for that year or penalty and income tax could be due. Participants should proceed down this route with caution.

Withdrawing from a Roth IRA

A second option is to consider withdrawing funds from Roth IRA assets. Under IRS rules, any money that is contributed to a Roth IRA can be removed without penalty or taxes after 5 years.

Unlike with a 401(k), income taxes are paid on money that the account holder contributes to the account. Therefore, these funds aren’t taxed when the money is removed. (This only applies to contributions, not investment profits.)

Now, the downside to consider:

•   Again, common advice states that removing money from any retirement account should generally be considered a last-resort option. The average person is already behind in saving for retirement, so even Roth IRA funds should only be considered after all other options are exhausted.

Access a Personal Loan

Another option to consider could be a personal loan. An unsecured personal loan can generally be used for any personal reason.

By using a personal loan, the participant is able to avoid a 401(k) early withdrawal penalty and leave all of the money invested within the account to grow uninterrupted.

Some other aspects to consider:

•   A personal loan also puts the borrower on an amortized payback schedule that has a defined end-date. Having a defined payback period may be beneficial during debt repayment — it provides a goal, and it is clear how progress is made throughout the life of the loan.

•   Compare the set amortization of a personal loan to the revolving debt of a credit card, where it can be quite tempting to add to the balance, even as the person is attempting to pay it off in full.

When charges are added to a credit card, the end-date can be pushed out further, especially in the event that the borrower is only making minimum payments. This is not the case with a personal loan where a lump-sum loan amount is disbursed and paid back within a set timeframe. You may want to consider using a personal loan calculator to compare costs.

The Takeaway

If you withdraw funds from your 401(k) retirement plan before age 59½, you will likely be subject to a 10% early withdrawal penalty as well as taxes. You may have other options available if you need funds, however, such as taking a loan against a 401(k), withdrawing from an IRA account, or securing a personal loan. With all of the above options, it is recommended to map out the cost of each and/or work with a tax advisor or financial advisor to help identify the best course.Ultimately, it will be up to you to research the best option given your needs.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. Checking your rate takes just a minute.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

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When you’re married and are each other’s beneficiaries, it makes sense to create a single joint will, right? Not necessarily. Even if you plan to leave everything to your significant other upon death, creating this kind of legal document may lead to complications down the line.

Let’s take a closer look at the different kinds of wills married couples can create so you can decide what’s best for you. Here’s what you need to know so you can have the right legal paperwork in place.

What Is a Joint Will?

A joint will is a single shared legal document, signed by two or more people. It is relatively uncommon today, and many attorneys recommend against them. One of the motivations for a joint will is that, when one person dies, it’s nearly impossible for a surviving spouse to change the terms of the will. This can be problematic because circumstances change over time. What if the person mentioned to inherit property in the will has passed away?

That said, a joint will for a couple can seem desirable precisely because it’s not flexible. This can ensure that a child from a previous marriage, for example, inherits what is outlined in the will even if their parent dies before their new spouse does. But these sort of permanent clauses can be handled in a trust, which can allow for complex, shifting situations.


💡 Quick Tip: A trust is a customized estate planning tool that can be helpful for your heirs in addition to a will.

How Do Joint Wills Work?

A joint will for a married couple is a single document, signed by two partners. When you’re both alive, changes can be made as long as you both agree. But once a partner dies, the will becomes binding.

For this reason, a joint will for a married couple can be binding, restrictive, and not necessarily optimal for the complexity of modern-day life.

Say that the will stipulates that the house the couple owns will be inherited by their three children upon the death of both spouses. But what if the surviving spouse has a financial emergency and wants to sell the house? Or simply wants to downsize to a smaller living space? Because of the will, they could be stuck in a difficult scenario.

Also consider that a joint will doesn’t always cover the ‘what ifs’ that can come up during life. From remarriage to family disputes to having more children, a joint will can lock assets in time, making it tough for the surviving spouse to move on.

How Do Mutual Wills Work?

Fortunately, there are options for those who worry about a joint will being too rigid. A more common option that offers flexibility is what’s known as a mutual will, or mirror will. In this case, two documents are created, one for each spouse. They may be identical, but because they are two documents, separately signed, the surviving spouse can then modify their own individual will when their partner passes away.

But what if you are concerned that you might die first and your surviving spouse could, say, omit a child or other loved one from their inheritance? (Yes, that may sound odd, but life contains many complicated family situations!) In this case, lawyers may recommend a trust as an option to ensure that your own personal wishes are carried out when it comes to your property. The trust can also make sure that your directives are followed when it comes to joint property mutually owned, like real estate.

Recommended: Important Estate Planning Documents to Know

Joint Will vs Individual Will: Pros and Cons

So, what are the pros and cons of joint wills versus individual (separate) wills? In general, the biggest con against a joint will may be the lack of flexibility. But for some people with relatively simple estates, this can seem like a positive.

Pros of a joint will:

•   Simplicity. It’s a one-and-done proposition!

•   Clarity. It ensures that both partner’s wishes, as written, will be respected, even after death.

Cons of a joint will:

•   Rigidity. If a partner gets remarried or has more children, it will be complicated if not impossible to change the original will.

Pros of an individual will:

•   Flexibility. After a partner dies, the surviving partner can change the will to reflect their new reality.

•   Simplicity. You can create one document and each sign it separately. Each individual is then free to amend their own will.

Cons of an individual will:

•   Flexibility. Yes, this is a double-edged sword. These wills aren’t “carved in stone” which can be a good or bad thing. Here’s the latter: With individual wills, the wishes of the partner who dies first may not be fully honored. These concerns may be solved by the creation of a trust.

•   Maintenance-intensive. A surviving partner may want to rewrite their will over time as their life circumstances change.

Do Husbands and Wives Need Individual Wills?

In most cases, yes, it’s beneficial if husbands and wives have separate wills. The wills can be identical — also called a mutual will or mirror will — but having two distinct documents that are individually signed can help protect against what-ifs in the future. Having individual wills can give flexibility to the surviving spouse.

Let’s say that a joint will stipulates that a house owned jointly by a married couple will go to children upon the death of both spouses. That means if one spouse dies, the other spouse may not be able to sell the house that he or she lives in, even in the case of financial hardship. A joint will can lock a surviving spouse in time, despite evolving circumstances.

Instead, a couple may prefer individual wills. These can mirror each other, but the surviving spouse retains flexibility in case their needs or circumstances change after the spouse dies.

Worth noting: For some, the lack of flexibility of a joint will may be seen as positive. For example, some couples may want a joint will to ensure their children receive an inheritance, even if the surviving spouse remarries. However, some legal experts believe this goal can better be achieved through the creation of a trust.

As you think about making your will, it can be helpful to consider the pros and cons of a joint will. Getting an expert opinion can also be a smart move.

What Happens to a Joint Will When Someone Dies?

A joint will is essentially frozen in time when someone dies. The will becomes “irrevocable,” and property must be divided according to the terms of the will. If it says all assets are to be inherited by the surviving spouse, then the surviving spouse will inherit assets. But confusion may occur if and when both spouses pass away. A joint will then makes it hard, if not impossible, to reallocate property.

Let’s consider another scenario to see why a joint will can be problematic. Perhaps a joint will specifies that a certain sum of money is to go to a charity upon death. If the charity no longer exists after one spouse passes away, this may lead to complications and a legal headache.

In short: A joint will is similar to a time capsule. While its contents may make sense now, it can be helpful to consider “what ifs” that may happen ten, twenty, or fifty years in the future. This can lead some couples to decide that individual wills will work better.

Recommended: What Happens If You Die Without A Will?

Can You Make a Joint Will Online?

It is possible to make a joint will online. But because not every state recognizes a joint will, it’s important to make sure you live in a state that does before you move forward.


💡 Quick Tip: It’s recommended that you update your will every 3-5 years, and after any major life event. With online estate planning, changes can be made in just a few minutes — no attorney required.

The Takeaway

End-of-life planning is an important way to express your wishes and protect those closest to you. A will is one key component of that, but married couples have an important choice to make when deciding whether to have joint or individual wills. Even if you and your spouse are the ultimate joined-at-the-hip lovebirds, having separate wills may be a good idea. It can often provide more flexibility and family peace in the years ahead.

When you want to make things easier on your loved ones in the future, SoFi can help. We partnered with Trust & Will, the leading online estate planning platform, to give our members 15% off their trust, will, or guardianship. The forms are fast, secure, and easy to use.

Create a complete and customized estate plan in as little as 15 minutes.

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Photo credit: iStock/fizkes

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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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