Retiring Early? A New IRS Rule Could Mean More Money in Your Pocket
The Great Resignation is translating into a flood of early retirements. When the decision to retire has been made suddenly, there are challenges and roadblocks that can cost the retiree dearly. Many of these challenges are dependent on what age you are when you leave employment. For example, you can’t access your Social Security until age 62, and even then, your benefit will be at a steep discount that you’re saddled with for life. Further, you can’t sign up for Medicare until you’re age 65.
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Perhaps the biggest age challenge for many early retirees is that you can’t, any withdrawal from your IRAs and 401(k) accounts before this magic age will result in a 10% tax penalty on each withdrawal.
