Is there a penalty tax assessed on retirement savings distributions received too early?
Generally, if you receive a distribution from your retirement plan account prior to age 59½, a 10% penalty tax will apply in addition to the applicable federal (and in some cases, state) income taxes. In some cases, such as distributions due to death, disability, or termination of employment after age 55, the 10% early withdrawal penalty tax does not apply.
Related Questions
- I want to retire before age 59. How do I avoid the 10% early distribution penalty on retirement payments from my 401k?
- Will the Roth IRA owner be subject to the 10 percent additional tax on early distributions under IRC Section 72(t)?
- Is there a penalty tax assessed on retirement savings distributions received too early?
