4 ways to fund an early retirement penalty-free

1024. Are you ready to quit working or to begin a financially independent lifestyle? Laura covers four ways to access your retirement funds without paying a hefty 10% early withdrawal penalty before 59.5. Key takeawaysUsing a tax-advantaged retirement account has many benefits, but one downside is typically paying a 10% penalty for withdrawals before age 59.5.The rule of 55 is an IRS rule that allows employees to take penalty-free retirement plan distributions when they leave during or after the calendar year of their 55th birthday.With a Roth IRA, you can withdraw your original contributions at any age, for any reason, entirely tax- and penalty-free. A SEPP or 72(t) payment plan is an IRS rule that allows you to take equal distributions from a retirement account penalty-free, no matter your age, if you follow strict guidelines. A brokerage account allows you to take distributions penalty-free, no matter your age, but doesn’t offer the tax perks of a retirement account.Upcoming Wedding Series Coming Up: We want your questions about wedding finances! Whether you're the bride, groom, or a guest, send us your questions about budgeting for the big day. Email: [email protected] or leave a voicemail: (302) 364-0308. Discover more from Money Girl!FacebookNewsletterTranscripts available at QuickandDirtyTips.com.Email: [email protected] or leave a voicemail: (302) 364-0308. Hosted on Acast. See acast.com/privacy for more information.