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IRS Loopholes Offer Penalty-Free Access to Retirement Funds
IRS Loopholes Offer Penalty-Free Access to Retirement Funds
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BTCCSquare news:
Qualified retirement accounts like 401(k)s and Traditional IRAs have long been pillars of financial planning, offering tax advantages but restricting access before age 59½. Early withdrawals typically incur a 10% penalty on top of ordinary income taxes—a costly hurdle for those pursuing early retirement or financial flexibility.
The Internal Revenue Code provides exceptions to this rule under Section 72(t), creating legal pathways to tap into retirement savings without penalty. These provisions serve as critical tools for strategic wealth management, particularly for investors bridging gaps between early retirement and traditional withdrawal eligibility.
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