Avoiding the 10% Tax Penalty

Have you paid medical expenses this year worth more than 7.5% of your adjusted gross income? Do you plan on buying your first home soon? Are you currently paying for higher education expenses? If you said yes to any of these scenarios, and you’re younger than age 59½, you may qualify to withdraw from your retirement account while still avoiding the 10% early distribution penalty.

While tapping into your retirement account should usually be a last resort, some situations may cause you to consider accessing your money early. However, qualifying for the exception is only the first step. You must also make sure the exception applies to the type of plan you have, and the expense must be paid within the same year as the distribution.

To learn more, click here to download “Avoiding the 10% Penalty in 5 Easy Steps.”

Have more questions about your retirement account distributions? Contact our office at 516-294-5287 to schedule a time to visit.