CHARLOTTE — There are typically penalties for making early withdrawals from retirement accounts, but at least three new exceptions begin in 2024, says Action 9’s Jason Stugenke.
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First, if you are a victim of domestic violence, you may be able to withdraw up to $10,000 from your retirement plan. Money must be withdrawn within one year of the crime. You don’t have to provide evidence, but you should have it ready in case of an audit.
Your withdrawals will still be taxable in all three scenarios, but you won’t have to pay any early withdrawal penalties.
You can then withdraw as much money as you like, although you will have to provide evidence if you find out you are terminally ill.
Third, if you encounter an emergency, such as an unexpected financial hardship, you may be able to withdraw up to $1,000.
However, be sure to run one of these with your tax professional first to see if you qualify.
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