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One of the best things about saving for retirement in an employer’s qualified retirement plan or an individual retirement account (IRA) is that you generally won’t be able to access the funds without penalty until you’re near retirement age. That means your account balance has the potential to grow for many years before you start making withdrawals.
To discourage you from dipping into your tax-deferred savings before retirement, the IRS generally imposes a 10% penalty on withdrawals made before age 59½. But what if you need a substantial amount of cash before then? Under certain circumstances, early withdrawals may qualify for an exception to the penalty.
FR2017-0504-0006/E
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