Making Your Retirement Stream Last
- Get Familiar with Your Choices
- Making the Decision: Annuity or Lump Sum?
- Taking a Lump-Sum Distribution: Know Your Options
- Moving from Your Company's Retirement Plan Before You Retire
- Early Withdrawals
Early Withdrawals
Most qualified retirement plans, tax sheltered annuities (TSAs), and IRAs allow withdrawals, without penalty, upon attaining age 59½. But there is a 10% penalty tax on withdrawals made before age 59½ (if the funds are not rolled over) from qualified retirement plans, TSAs, and IRAs, unless the distribution is made under one of the limited circumstances allowed by law. These include:
- distributions made after separation from service with your employer during or after the year in which age 55 is attained (this rule doesn't apply to IRAs);
- distributions made due to disability or after the employee's death;
- distributions for qualified medical expenses that exceed 10% of adjusted gross income (7.5% in 2019);
- distributions after separation from service that are part of a scheduled series of substantially equal periodic payments (the separation from service requirement does not apply to IRAs);
- distributions from an IRA to pay for qualified higher education expenses;
- distributions from an IRA to a qualified first-time homebuyer up to a $10,000 lifetime limit;
- distributions to an "alternate payee" under a divorce court order (i.e., QDRO).
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Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
Securities and insurance products are offered through INFINEX INVESTMENTS INC. and its affiliates, member FINRA/SIPC. Infinex Investments Inc. and Exchange Investment Services, Inc. are independent entities.
Not FDIC Insured | Not Bank Guaranteed | May Lose Value | Not Guaranteed by any Government Agency | Not a Bank Deposit
This site is designed for U.S. residents only. The services offered within this site are available exclusively through our U.S. registered representatives. Infinex Investments Inc. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all the investments and services mentioned are available in every state.
