Taking Early Distributions from Retirement Accounts
If you plan on retiring early, then knowing the limits of when you can start taking distributions without penalty is a must. Typically, this happens when you reach 59½.
In some cases, not only are these distributions penalty-free, but also tax-free. So, if you can put off taking money out until then, you should try to do so, even if that means working for a little while longer when all you can think of is just quitting it all and retiring- right here and now.
Thanks to those penalties, you may stand to lose a significant portion of your retirement funds, meaning you’ll have to re-plan your retirement strategy and how you’re going to budget going forward.
