You may choose, or be forced into choosing, early retirement. Retirement before age 59 1/2 may create income challenges. You are not yet eligible to receive retirement benefits from Social Security. You may or may not have a monthly pension to generate income.
In many situations, you will need to generate income from your assets. Often, most of your assets are in a retirement plan through a 401(k) plan at your employer or in an individual retirement arrangement (IRA). Withdrawals of earnings and pre-tax contributions are subject to ordinary income tax. In addition, you may be subject to the 10% early withdrawal penalty tax on distributions taken before you reach age 59 1/2. Download the full, no strings attached, newsletter to learn more.
If you or someone you know are looking for a tax professional, feel free to contact Rajesh Gulati of Broad Crossing, Inc. @ 1-703-786-4322 he is a tax professional who is also a member of our QBO Mastermind network of expert tax and bookkeeping professionals.
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