Avoid Paying Penalties and Taxes If You Try to Withdraw Funds Before You Turn 59 ½
There may be situations where you’d need to withdraw your earnings before you turn 59 ½. In that case, you could be subject to a 10% IRS tax penalty on top of ordinary income tax. But not always!
Avoid the 10% penalty on qualified or non-qualified funds by purchasing an immediate income annuity with a lifetime income payout. This sort of flexibility might be best for some seniors who, for one reason or another, would like to retire earlier than anticipated.
Use these exceptions to your advantage and try to avoid costly mistakes!