New Exceptions to the 10% Early Withdrawal Penalty

While it’s best to let retirement savings grow until you’re ready to retire, sometimes accessing those funds early becomes necessary. Under SECURE 2.0 and subsequent IRS guidance, more penalty-free withdrawal options are now available.

New and expanded exceptions include:

• Emergency personal expense distributions

• Disaster-related withdrawals

• Domestic abuse survivor distributions

• Certain long-term care and terminal illness situations

Download “Avoiding the 10% Penalty in 5 Easy Steps” for more insight into how these exceptions work, which plans they apply to, and how to document eligibility.

If you’re considering an early withdrawal or preparing for early retirement, contact our office at 516-294-5287 to discuss strategies that can help minimize taxes and penalties.