Retirement Penalty

by | May 30, 2024 | Tax

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.

So You Filed Your Taxes… Now What?

You did it. You gathered the documents, answered the questions, signed where needed, and got your tax return filed. If we helped prepare it for you, we can confidently say you handled your part like a pro. Now comes the part nobody loves but everyone participates in anyway: waiting for your refund.

Missed Tax Deadline?

If April 15 came and went and you didn’t file your tax return, or submit an extension, you’re definitely not the only one. It happens every year for all kinds of reasons. The important thing now is what you do next.

The IRS Dirty Dozen for 2026 and Why Those “Tax Hacks” Might Cost You

Every year, the IRS releases its “Dirty Dozen” list of tax scams, and every year the schemes get a little more creative and a lot more convincing. The 2026 list is no exception.

Extensions Aren’t Scary

Not going to make the April 15the deadline?

That’s okay. Nothing bad will happen.

Tax Extensions for 2025 Returns: What Current Clients Need to Know

First, let’s be clear

A tax extension gives you more time to file. It does not give you more time to pay.

Beware of the Latest IRS Impersonation Scam

IRS impersonation scams are becoming more sophisticated. The newest trend involves fraudulent IRS communications – delivered via email, phone calls, or even seemingly official mail – that attempt to intimidate individuals into providing personal information or making payments.

How Senter CPA Helps You Stay Organized, Compliant, and Confident

Accurate record-keeping, strong organizational habits, and effective use of accounting software are essential pillars of sound financial management. Whether managing a small business, a nonprofit, or personal finances, these practices not only ensure compliance with legal and regulatory requirements but also support smarter decision-making and long-term financial health.

National Reading Month at Senter, CPA 

March is National Reading Month, and it’s a reminder of something simple but incredibly powerful: books change lives.

Most of us can remember our favorite childhood story. You know the one we asked to hear again and again before bedtime, or the book that first made reading feel fun instead of like homework. Those early moments matter more than we often realize. They help children build confidence, curiosity, and a lifelong love of learning.

That’s one of the reasons Senter, CPA has chosen to support the Dolly Parton’s Imagination Library.

A Day in the Life of a CPA During Tax Season (Please Send Snacks)

If you’ve ever wondered what happens after you drop off your tax documents, here’s a little behind-the-scenes look at life inside a small CPA firm during tax season.

Sharing Online Banking with Your Accountant

To allow your accountant access to your bank’s online banking system, follow these general steps. This typically involves navigating to a “User Management” or “Account Access” section, where you can add a new user and set permissions—usually “view-only” for accountants.