Guide to the Early Distribution Penalty Exceptions for Distributions from Retirement Accounts Webina

Distributions from retirement accounts that occur before the account owner reaches age 59½ are subject to a 10% additional tax, unless an exception applies. Eligibility for any of these exceptions is determined by several factors, including the type of account from which the distribution is made. Making a wrong move can result in a retirement account owner losing eligibility for an exception. In some cases, exceptions can only be claimed through proper reporting on the individual's tax return.
Highlights

• Identify distributions that might be subject to the 10% early distribution penalty
• Ensure that clients who qualified for the exceptions do not pay the 10% early distribution penalty because of conflicting tax reporting by IRA custodians and plan trustees
• Understand the tax reporting requirements that apply to early distributions
• Determine suitability for the substantially equal periodic payment program