Early Retirement Distributions

This handout highlights the rules regarding the exception to the 10% penalty for early retirement distributions. The handout also discusses the possible risks involved in implementing this strategy.

HIGHLIGHTS: 

  • Early retirement (before age 59 1/2) rules.

  • Calculation of substantially equal periodic payments.

  • Changes to the account balance once the plan is implemented.

  • Changes to the plan.

CLIENTS WHO MAY BENEFIT: 

  • Taxpayers under the age of 59 1/2 who are planning on retiring early and funding their retirement with distributions from retirement accounts.

  • Taxpayers who may be considering a change to an established plan.

Planning & Life Issues, Individual Income TaxClare FazackerleyRetirement, Distributions, Planning, Early Retirement, Penalties