Article on Retirement Account Freebies: Taking Penalty-Free Withdrawals

Brent W. Nelson recently published an Article entitled, Retirement Account Freebies: Taking Penalty-Free Withdrawals, Probate and Property Magazine, Vol. 33 No. 2, March/April 2019. Provided below is the introduction to the Article.

Americans across the political spectrum seem to agree that retirement is a worthwhile venture. The recent economic recovery caused historic gains in the United States markets, erasing recession-caused losses, though perhaps not recession caused pain. Under the current bull market environment, taxpayers may be more motivated and able to tap into retirement accounts to fund early retirements. Market volatility means that some taxpayers may find themselves in difficult financial circumstances in the future that might necessitate dipping into retirement accounts. In either case, the well-advised taxpayer may be able to withdraw money from his qualified retirement plan before age 59 1/2 and avoid paying the 10% tax on early withdrawal by qualifying for one of the many exceptions. Keeping those exceptions in mind is essential for the advisor to properly guide taxpayers contemplating an early withdrawal to a penalty-free goal. This article will guide the reader through those many rule, not all of which are widely understood among professional ranks.