Starting in 2024, individuals may make withdrawals, without penalty, of up to $1,000 per year for emergency expenses. That money can be paid back to the retirement account within three years, and no more may be withdrawn within the three-year repayment period unless it is paid back. But, in a real emergency, you can tap into those savings.
Individual survivors of domestic abuse can also remove a limited amount of cash from their retirement accounts without incurring a 10% early withdrawal fee. Plus, if survivors pay back the amount of money they withdrew, they’ll receive a refund on any income tax they paid on the money they eventually use to refund their retirement accounts.
Do you dream of retiring early?
Retiring early is a goal for many, but few of us have a plan for how to actually do it.
Instead we have questions like… How much money do we need? Where should we keep that money?
A financial advisor can help you sort through your options and come up with a solid plan. Get started today by taking this quiz from SmartAsset to get matched with a vetted financial advisor in your area.