If you are retiring before the “normal” retirement age of 59½ or older, or if you find yourself in need of money, you may need to make an early withdrawal from your retirement plan. An early withdrawal from your retirement plan is not without consequences – there will be taxes for sure, and quite possibly (likely?) penalties (referred to as “additional tax on early withdrawals” below). For exceptions to the early withdrawal penalty for IRAs, see this article. Otherwise, for exceptions to the early withdrawal penalty for a 401k, see this article.
Recently the IRS published …Read More