Close

Client Center

BackBack

Client Login



Forgot Your Password? Please try logging in with the last password you remember first. (If that fails, you'll be able to reset your password on the next page.)

QuickBooks Online

QuickBooks Desktop

Hosted by RightNetworks


Receipt Bank

Video Meeting

Join a scheduled video meeting with our staff.

InvoiceSherpa

Fathom

Retirement Plan – Early Withdrawals

Penalties for Withdrawals before 59 ½

Traditional IRA

Penalty: 10% (in addition to the regular tax on the distribution)

Exceptions to the penalty: death, disability, medical expenses over 10% AGI, college for self, spouse, child or grandchild, first time homebuyer ($10,000 limit), annuity payout over life expectancy

Roth IRA

Penalty: 10% on the earnings (never the principle contributed). A Roth requires a five-year holding period before distributions, even if over age 59 ½. Since Roth money has already been taxed, there is no penalty for anyone until total withdrawals exceed total contributions.

Exceptions to the penalty: death or disability, first time homebuyer ($10,000 limit)

SEP IRA

Penalty: 10% penalty (in addition to the regular tax on the distribution)

Exceptions to the penalty: death or disability, first time homebuyer ($10,000 limit)

SIMPLE IRA

Penalty: 10% penalty (in addition to the regular tax on the distribution) UNLESS it’s within the 2-year holding period, then it’s a 25% penalty

Exceptions to the penalty: death, disability, medical expenses over 7.5% AGI,- college for self, spouse, child or grandchild, first time homebuyer ($10,000 limit), annuity payout over life expectancy

401-K

Penalty: 10% penalty (in addition to the regular tax on the distribution)

Exceptions to the penalty: death, disability, severance from employment after age 55, financial hardship, medical expenses, qualified reservist

Roth 401-K

Penalty: 10% on the earnings (never the principle contributed). A Roth requires a five-year holding period before distributions, even if over age 59 ½ Since Roth money has already been taxed, there is no penalty for anyone until total withdrawals exceed total contributions

Exceptions to the penalty: death, disability, severance from employment after age 55, financial hardship, medical expenses, qualified reservist