Qualified
retirement plan distributions due to separation from service in or after the year you reach age 55 (age 50 for qualified public safety employees such as policemen and firemen.)
Not exact matches
50 — Taxable
distributions from IRAs and qualified employer
retirement plans before age 59 1/2 are generally subject to a 10 % early
distribution penalty (20 % for certain SIMPLE
plan distributions) on top of any federal income taxes
due.
I had
planned to forgo SEPP 72 (t)
distributions during early
retirement,
due to the strict rules and administrative headaches associated with them, but if I know I'll need to withdraw a set amount from my tax - advantaged accounts every year, it makes sense to set up SEPP because this exercise has shown that it is the most tax - efficient way of accessing
retirement - account money early.
Due to the state of the economy, many taxpayers may have taken early
distributions from
retirement plans last year.
But what insurance agents really mean when they make this point is if you put money in a tax - advantaged
retirement plan like a 401 (k) and want to take it out for a purpose other than
retirement, you might have to pay a 10 % early
distribution penalty plus the income tax that's
due.