Did you know that with the IRA withdrawal rules that if you take out your money early you can be hit hard with penalty fees?
However, you may not have to pay the 10% additional tax on withdrawing your funds unless you meet a 5 year rule that applies, or it the following IRA exemptions:
- You have reached age 59 1/2.
- You are disabled.
- You are the beneficiary of a deceased IRA owner.
- You use the distribution to pay certain qualified first-time homebuyer amounts.
- The distributions are part of a series of substantially equal payments.
- You have significant unreimbursed medical expenses.
- You are paying medical insurance premiums after losing your job.
- The distributions are not more than your qualified higher education expenses.
- The distribution is due to an IRS levy of the qualified plan.
- The distribution is a qualified reservist distribution.
- The distribution is a qualified disaster recovery-assistance distribution.
- The distribution is a qualified recovery-assistance distribution.
Learn more about the current IRA rules to stay up-to-date so you will not be hit with any unexpected penalties or fees when it comes time to withdrawal your retirement funds.