Posts

Beware of Early Withdrawal Penalties



Removing money from your nest egg early could cost you.

Thinking about pulling money out of your retirement plan early? Below are a few things you should know about early withdrawal.

  • An early withdrawal is considered removing money from your retirement account before you reach age 59½.
  • If you decided to withdrawal your funds before age 59½, you must report the amount removed to the IRS and you may be subject to a 10% penalty on the early withdrawal.
  • You may be able to avoid the 10% penalty for the following reasons:
    • You withdrew money from a retirement account in which you paid taxes on the money before you deposited it.
    • Transferring money from a qualified retirement plan to another retirement plan within 60 days is not subject to income tax or the 10% penalty.
    • Other exceptions may be made, for example, if you need to remove money for certain medical expenses or if a taxpayer is disabled.

For more information, contact your H&S tax professional today.

PPACA Newsletter


The Patient Protection Affordable Care Act of 2010 (PPACA) is here to stay. Several provisions have already taken effect, but there are many more to come. Read the Special PPACA Edition of the Bottom Line to learn more.

 

HSCompanies-Feb-Nsltr-PPACA1

Click to Download

In This Issue:

  • 2013 & The PPACA: The Patient Protection and Affordable Care Act of 2010, also known as the PPACA, is the single largest health care bill ever passed. It has a monumental impact upon the health care and insurance industry in the United States.
  • Non-Discrimination Rules to Take Affect for 2014: The PPACA added Section 2716 to the Public Health Service Act (PHSA), which states non-grandfathered health insurance plans, including fully-insured plans, must follow the same non-discrimination testing rules that apply to self-insured health insurance plans as outlined under IRS Section 105(h).
  • Am I Considered A ‘Large Employer’: Only employers who are considered a large employer are subject to the employer mandate provisions of the PPACA.
  • Major Changes Effective for 2013
  •   The Confusing World of Penalties: As you may have read, the PPACA will implement fines for employers who are subject to the new regulations but do not comply. It is still possible, however, for an employer to offer insurance and still get hit with the fine.