{"id":3072,"date":"2019-04-05T11:45:40","date_gmt":"2019-04-05T16:45:40","guid":{"rendered":"https:\/\/cookco.us\/news\/?p=3072"},"modified":"2019-04-05T08:56:34","modified_gmt":"2019-04-05T13:56:34","slug":"taking-early-withdrawals-from-retirement-plans","status":"publish","type":"post","link":"https:\/\/cookco.us\/news\/taking-early-withdrawals-from-retirement-plans\/","title":{"rendered":"Taking Early Withdrawals from Retirement Plans"},"content":{"rendered":"\n<p class=\"has-large-font-size wp-block-paragraph\">Taxpayers may need to take money out of their individual retirement account or retirement plan early. However, this can trigger an additional tax on top of other income tax they may owe. <\/p>\n\n\n\n<p class=\"has-medium-font-size wp-block-paragraph\">Here are a few key things for taxpayers to know:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Early Withdrawals &#8211;<\/strong> An early withdrawal normally is taking cash out of a retirement plan before the taxpayer is 59\u00bd years old.      \u00a0<\/li><li><strong>Additional Tax &#8211;<\/strong> The IRS charges a 10 percent penalty on early      withdrawals from most qualified retirement plans. There are some <a rel=\"noreferrer noopener\" href=\"http:\/\/links.govdelivery.com:80\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTkwNDA0LjQyMzkyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwNDA0LjQyMzkyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNzIzMjU5MCZlbWFpbGlkPWdyZWdAYmFyYS5uZXQmdXNlcmlkPWdyZWdAYmFyYS5uZXQmZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;128&amp;&amp;&amp;https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-tax-on-early-distributions\" target=\"_blank\">exceptions<\/a> to this rule.<\/li><li><strong>Nontaxable Withdrawals &#8211;<\/strong> The additional tax does not apply to nontaxable withdrawals. These include withdrawals of      contributions that taxpayers paid tax on before they put them into the      retirement plan.<\/li><li><strong>Rollovers are a nontaxable withdrawal &#8211;<\/strong> A <a rel=\"noreferrer noopener\" href=\"http:\/\/links.govdelivery.com:80\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTkwNDA0LjQyMzkyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwNDA0LjQyMzkyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNzIzMjU5MCZlbWFpbGlkPWdyZWdAYmFyYS5uZXQmdXNlcmlkPWdyZWdAYmFyYS5uZXQmZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;129&amp;&amp;&amp;https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/rollovers-of-retirement-plan-and-ira-distributions\" target=\"_blank\">rollover<\/a> happens when taxpayers take cash or other assets from one retirement plan and put the money in another plan within 60 days. A rollover can also happen when they direct their plan administrator to make the payment directly to another retirement plan or to an IRA.<\/li><li><strong>Form 5329 &#8211;<\/strong> Taxpayers who took an early withdrawal last year may      have to file <a rel=\"noreferrer noopener\" href=\"http:\/\/links.govdelivery.com:80\/track?type=click&amp;enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTkwNDA0LjQyMzkyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTkwNDA0LjQyMzkyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNzIzMjU5MCZlbWFpbGlkPWdyZWdAYmFyYS5uZXQmdXNlcmlkPWdyZWdAYmFyYS5uZXQmZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;130&amp;&amp;&amp;https:\/\/www.irs.gov\/forms-pubs\/about-form-5329\" target=\"_blank\">Form 5329<\/a> with their federal tax return.\u00a0<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Taxpayers may need to take money out of their individual retirement account or retirement plan early. However, this can trigger an additional tax on top of other income tax they may owe. Here are a few key things for taxpayers to know: Early Withdrawals &#8211; An early withdrawal normally is taking cash out of a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2983,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"2019-04-05T16:49:25Z","apple_news_api_id":"2e002317-b69d-438f-bdd1-e6c333a3f303","apple_news_api_modified_at":"2019-04-05T16:49:25Z","apple_news_api_revision":"AAAAAAAAAAD\/\/\/\/\/\/\/\/\/\/w==","apple_news_api_share_url":"https:\/\/apple.news\/ALgAjF7adQ4-90ebDM6PzAw","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/74d71b26-dfe2-3cf6-9b79-55911f8259f1"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[84],"tags":[],"class_list":["post-3072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/3072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=3072"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/3072\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/2983"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=3072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=3072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=3072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}