Lesson 26 Early Retirement Tactics: How to Avoid the Tax Traps
If you have the necessary capital, taxes shouldn’t prevent you from retiring early. A little planning will avoid those pesky penalties.
How to Retire Early and Not Pay the Taxman a Penalty
So you want to retire early? Good for you. But, even if you have enough total funds to support yourself comfortably, some retirement plan assets may be locked away or awkward to access.
By now, almost everyone is aware of the 10% penalty imposed on early withdrawals from qualified retirement plans. These are imposed, subject to a few exceptions (such as death, disability, education expense, or first-time home purchase), on any distribution prior to age 59½.
Exceptions to the Early Distribution ...
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