Article: Early Distributions From Retirement Plans

Early Distributions From Retirement Plans

An early distribution from an Individual Retirement Arrangement (IRA) or a qualified retirement plan need not be a ?taxing? experience. Fortunately, there are exceptions to early distributions.



Any payment that you receive from your IRA or qualified retirement plan before you reach age 59½ is normally called an ?early? or ?premature? distribution. As such, these funds are subject to an additional 10 percent tax. But there are a number of exceptions to the age 59½ rule that you should investigate if you make such a withdrawal. Some of these exceptions apply only to IRAs, some only to qualified retirement plans, and some to both. IRS Publications 575, Pensions and Annuities, and 590, Individual Retirement Arrangements (IRAs), have details.



In addition to the 10 ...
 

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Early Distributions From Retirement Plans

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