Retirement Plan Distributions
Please note that the content in this article is purely informational and should not be taken as professional or legal advice. Tax laws and regulations are subject to change without notice. Consult an experienced accounting team like John Freeman CPA before making any serious financial or legal decisions.
The vast majority of retirement plan distributions are subject to income tax by the IRS and are sometimes subject to an additional 10% tax. There are several exceptions to the 10% additional tax rule for qualified plans related to age, death, disability, domestic relations, education, medical and many more.
The additional 10% tax commonly comes into play when an individual withdraws from a retirement plan before reaching the age of 59, making it an early or premature distribution. If you find yourself in a situation where you need to make an early or premature withdrawal, it is best to consult a tax professional.
Our team can advise you on various strategies to minimize the amount of income tax owed for your retirement withdrawals and navigate your retirement plan distributions. Contact us to learn more!
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