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Making Your Retirement Stream Last

Early Withdrawals

Most qualified retirement plans, tax sheltered annuities (TSAs), and IRAs allow withdrawals, without penalty, upon attaining age 59½. But there is a 10% penalty tax on withdrawals made before age 59½ (if the funds are not rolled over) from qualified retirement plans, TSAs, and IRAs, unless the distribution is made under one of the limited circumstances allowed by law. These include:

  • distributions made after separation from service with your employer during or after the year in which age 55 is attained (this rule doesn't apply to IRAs);
  • distributions made due to disability or after the employee's death;
  • distributions for qualified medical expenses that exceed 10% of adjusted gross income (7.5% in 2018);
  • distributions after separation from service that are part of a scheduled series of substantially equal periodic payments (the separation from service requirement does not apply to IRAs);
  • distributions from an IRA to pay for qualified higher education expenses;
  • distributions from an IRA to a qualified first-time homebuyer up to a $10,000 lifetime limit;
  • distributions to an "alternate payee" under a divorce court order (i.e., QDRO).
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Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window).  UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


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