Early IRA and 401(k) Withdrawals: What to Know

What You Need To Know

• A 10% early withdrawal penalty applies if a client starts withdrawing funds before age 59.5, with certain exceptions.
• The IRS often allows repayable distributions for taxpayers dealing with the aftermath of federally declared disasters.
• IRA owners can make penalty-free withdrawals, limited to $10,000, for purchasing a first home.