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>>) How much will the 10% penalty be? Is it $1100 (total * 10%) or is it 10% of something else, like the amount the fund has appreciated?

The early withdrawal penalty will be $1100 (total withdrawal * 10%)

>>2) How much will taxes be based on? The total $11,000 or the appreciated amount?

The income tax will be $11000 * your tax rate (in other words, both the penalty and the income tax are based on the total amount you withdraw).

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