Insights
We are proud to be named a West Coast Regional Leader for 2024
Understanding Penalty-Free IRA Withdrawals: Key Exceptions and Updates
Authored by Vasquez + Company
Authored by Vasquez + Company
Withdrawing funds from an Individual Retirement Account (IRA) before age 59½ typically incurs a 10% tax penalty. However, there are specific circumstances under which individuals can access these funds penalty-free. This article outlines the various situations where early withdrawals are exempt from this penalty, such as disability, first-time home purchases, and higher education expenses. It also covers important updates from the SECURE 2.0 Act regarding required minimum distributions (RMDs).
Key Points
- Penalty-Free Withdrawals: Situations include death, disability, equal periodic payments, home purchases, unreimbursed medical expenses, medical insurance, higher education expenses, IRS levy, and active duty call-up.
- Required Minimum Distributions: Updates from the SECURE 2.0 Act, including changes in the required distribution age from 72 to 73, and later to 75.
For more information, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
Let's Talk!
Call us at +1 213.873.1700, email us at solutions@vasquezcpa.com or fill out the form below and we'll contact you to discuss your specific situation.
Vasquez + Company LLP is one of the largest minority-owned CPA firms in the state of California with offices in Los Angeles, San Diego, Sacramento, and Manila.
Vasquez + Company, LLP Areas of Specialization:
- Assurance (Audits and Attestation Services)
- Advisory Services
- Business Outsourcing Solutions
- Information Technology
- Tax & Tax Consulting
Vasquez + Company LLP has over 50 years of experience in performing audit, tax, accounting, and consulting services for all types of nonprofit organizations, governmental entities, and private companies. We are the largest minority-controlled accounting firm in the United States and the only one to have global operations and certified as MBE with the Supplier Clearinghouse for the Utility Supplier Diversity Program of the California Public Utilities Commission.
For more information on how Vasquez can assist you, please email solutions@vasquezcpa.com or call +1.213.873.1700.
Subscribe to receive important updates from our Insights and Resources.