Smart Strategies for Qualifying for Early Distribution Penalty Exceptions. Early—or pre-age 59½—distributions from IRAs and employer plans are subject to a 10% early distribution penalty unless an exception applies. In Part 1, we explain how to avoid losing eligibility for some exceptions by changing from one type of plan to another. In Part 2, we highlight […]
How to Avoid the 10% Early Distribution Penalty: Part 2 of 2 Read More »
A tale of two retirees “Tom” spent more than 35 years in the oil and gas industry and human resources for a large healthcare organization. He retired at the age of 61. Today, he is active in the community, can often be found on the golf course, and volunteers in various ways, including at a
Retirement—A Journey That Involves Transition and Opportunity Read More »
According to a 2024 report by the Treasury Inspector General for Tax Administration (TIGTA), Americans made early distributions of $12.9 billion in 2021. Early distributions—those taken before age 59 ½—are subject to a 10% additional tax or early distribution penalty. To that end, the following are some of the strategies that you can utilize to
How to Avoid the 10% Early Distribution Penalty: Part 1 of 2 Read More »