59 1/2 Rule

Now that you’re 59 ½, you have the option to start taking money out of your retirement accounts without facing the 10% early withdrawal penalty. In this video, Emily, our Director of Client Communication, reviews the basics of the 59 1/2 rule! That’s right, even if you haven’t retired yet, you have access to your hard-earned retirement savings if you need them. Here are some things to know.

If you draw funds from a traditional retirement account such as a 401k or 403b, or traditional IRA you’ll pay income tax on the amount you take out, but you will not be subject to an early withdrawal penalty.

If you draw funds from a Roth account, those withdrawals will be completely tax free – but only if the account has been open for at least 5 years.

But just because you can take funds out of these accounts, doesn’t mean you have to take funds out of these accounts yet. If you have questions about this, give us a call so you can talk strategy with one of our advisors.