Make Sure You Understand Early Distribution Exceptions

Thinking about taking an early distribution from your retirement plan and believe you can do so without getting hit with a penalty? You should be very, very careful in doing so. Yes, there are times when taking an early distribution is appropriate and you can avoid an early distribution penalty, but such situations are often few and far between. Aside from avoiding early distributions at all costs, you should really speak with a certified financial planner or retirement expert as part of the consideration process if you are fairly serious about doing so. While there are a number of ways Continue reading Make Sure You Understand Early Distribution Exceptions

When Saving for Retirement, Look Beyond IRAs and 401(k)s.

When it comes to saving for retirement, IRAs and 401(k)s get lots of love. They’re the two accounts that get talked about the most and, as a result, tend to be the most common accounts that people use when saving for retirement. While they are a great way to save for the future, they shouldn’t be the only accounts used when saving for retirement. Just like when it comes to investing, you should consider diversifying where you save your money for retirement. Yes, you should use accounts such as IRAs and 401(k)s to do so, but you should also save Continue reading When Saving for Retirement, Look Beyond IRAs and 401(k)s.

Roth IRA Distribution Under Age 59.5

If you are considering taking money out of your Roth IRA before reaching age 59½, you will need to understand the Roth IRA distribution rules. The rules require that all contributions come out first and are tax and penalty free. Next comes conversion amounts. Contributions on distributed on a “first in, first out” basis and they are income tax free. However, any conversion taken out before reaching the 5-year holding period gets hit with a 10% early distribution penalty, barring any other exceptions. Once a conversion has been held for 5 years, it is not subject to that 10% early distribution Continue reading Roth IRA Distribution Under Age 59.5

Withdrawal IRA Money Without Penalties

Are you getting near retirement age and considering making a withdrawal from your IRA, but don’t want to get hit with a penalty if you do? There are multiple ways to withdrawal money from your IRA. However, most of these methods cannot be done until you have reached age 59½. Such methods for withdrawals without penalties include: withdrawal of excess contributions, required minimum distributions (RMDs), qualified higher education expenses, and first-time home purchases, just to name a few. If you are considering taking money out of your IRA, you should talk with a certified financial planner to make sure it Continue reading Withdrawal IRA Money Without Penalties