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March 19, 2013
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Tax rules on early withdrawals from retirement plans

Taking money out early from your retirement plan can cost you an extra 10 percent in taxes. Here are five things you should know about early withdrawals from retirement plans. An early withdrawal normally means taking money from your plan, such as a 401(k), before you reach age 59½. You must report the amount you withdrew from your retirement plan to the IRS. You may have to pay an additional 10 percent tax on your withdrawal. The additional 10 percent tax normally does not apply to nontaxable withdrawals. Nontaxable withdrawals include withdrawals of your cost in participating in the plan. …

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The Nevada Appeal Updated Mar 19, 2013 07:48PM Published Mar 21, 2013 01:44PM Copyright 2013 The Nevada Appeal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.