The April 15th deadline is behind us.

At this point, some of you may want to think about your 2024 finances and tax return. That being the case, for many of you, that would include taking a retirement distribution from your retirement accounts. If you think that you may need to take a retirement distribution before the age of 59.5 there is a 10% penalty. There are certain exceptions from that 10% penalty as long as you use that money for these specific reasons:

  • Age
  • Automatic enrollment
  • Birth of Adoption
  • Corrective Distributions
  • Death
  • Disability
  • Disaster Recovery Distribution
  • Domestic Abuse Victim Distribution
  • Domestic Relations
  • Education
  • Emergency Personal Espense
  • Emergency Saving Account
  • Equal Paymets
  • ESOP
  • Homebuyers
  • Levy
  • Medical
  • Military
  • Returned IRA Contributions
  • Rollovers
  • Serparation from Service
  • Terminal Illness
  • Unemployed Health Insurance

Please follow the attached link, HERE, to the IRS website that will list the qualified distributions with a more detatiled description of the exception that will allow you to make them with no penalty. So, if you find yourself taking a retirement distribution, make sure that one of the exceptions apply and that your provider knows and uses correct distribution codes.

Always remember, Senter, CPA is here for you if you need any assistance.

Don’t hesitate to give us a call at 248-934-0550, or contact us below.


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