Exceptions to the Tax on Early Retirement Withdrawals
There may be times when it is necessary to pull funds out of your retirement accounts. Most retirement plan distributions are subject to income tax and may be subject to an additional 10% tax penalty. The amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called "early" or "premature" distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies.
If you have had a need to withdraw funds from a retirement plan, contact us to have a tax assessment of the potential effect on your income tax return.