Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty

Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty

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retirement plan withdrawal

Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject to a 10% penalty tax.

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