retirement

How to crack open your IRA without triggering a tax penalty

Taxes » Investment Taxes »

Military exceptions
Military exceptions | Africa Studio/Shutterstock.com

Military exceptions

Members of the military reserves also can receive early IRA distributions without penalty. To qualify, the following conditions must be met.

Conditions

  • You were ordered or called to active duty after Sept. 11, 2001.
  • You were ordered or called to active duty for a period of more than 179 days or for an indefinite period because you are a member of a reserve unit.
  • The distribution is from an IRA or from an elective-deferral plan, such as a 401(k) or 403(b) plan or a similar arrangement.

In addition, the early distribution cannot be taken before you received your orders or call to active duty or after your active-duty period ends.

Personnel eligible for this early withdrawal exception include members of the Army or Air National Guard; the Army, Naval, Marine Corps, Air Force or Coast Guard Reserves; and the Reserve Corps of the Public Health Service.

advertisement

          Connect with us
advertisement
9 myths about IRAs
advertisement
advertisement

Connect with us