All tagged Retirement Accounts
Withdrawing taxable funds from a tax-deferred retirement account before age 59½ generally triggers a 10% federal income tax penalty, on top of any federal income taxes due. However, there are certain situations in which you are allowed to make early withdrawals from a retirement account and avoid the tax penalty.
An individual retirement arrangement is a personal savings plan that offers specific tax benefits. IRAs are one of the most powerful retirement savings tools available to you. Even if you're contributing to a 401(k) or other plan at work, you might also consider investing in an IRA.