Premature Distribution

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Dictionary Says

Definition of 'Premature Distribution'

Any distribution taken from an IRA, qualified plan or tax-deferred annuity that is paid to a beneficiary that is under age 59.5. Premature distributions are subject to a 10% early-withdrawal penalty by the IRS as a means of discouraging savers from spending their retirement assets prematurely.

Investopedia Says

Investopedia explains 'Premature Distribution'

There are several instances in which the premature-distribution penalty rules are waived, such as for first-time homebuyers, education expenses, medical expenses and Rule 72(t), which states that a taxpayer can take IRA withdrawals before they are 59.5 as long as they take at least five substantially equal periodic payments (SEPPs).
Search results for

'Premature Distribution'

  • What are the exceptions to the premature withdrawal penalty rules ...

    http://www.investopedia.com/ask/answers/09/withdrawal-penalty-exceptions.asp
    ... What are the exceptions to the premature withdrawal penalty rules for IRA accounts ...
    IRA, you must pay an additional 10% tax penalty on this distribution of assets ...

  • The 4-1-1 on 403(b) Plans

    http://www.investopedia.com/articles/retirement/10/403b-plans.asp
    ... $50,000 or half of their plan balance, and any outstanding loan balance that is
    not repaid within five years is treated as a taxable or premature distribution. ...

  • Introduction To Annuities: Advantages And Disadvantages ...

    http://www.investopedia.com/university/annuities/annuities2.asp
    ... Illiquidity – Most annuity contracts charge stiff surrender penalties for early
    withdrawal, plus a 10% premature distribution penalty to investors who take ...

  • Top 5 Critical Retirement Plan Mistakes To Avoid

    http://www.investopedia.com/articles/retirement/5-retirement-mistakes-avoid.asp
    ... fund my vacation before I started the new job." If you are 59.5 years of age or
    younger, you will pay a 10% penalty on what is called a premature distribution. ...

  • Trend-Spotting With The Accumulation/Distribution Line

    http://www.investopedia.com/articles/trading/08/accumulation-distribution-line.asp
    ... Conclusion The accumulation/distribution line is an effective tool for spotlighting ...
    appropriate exit points should help you avoid taking premature profits or ...

  • Asset Distributions A Key Consideration For Retirees

    http://www.investopedia.com/articles/retirement/08/qualified-plan-distributions.asp
    ... The retiree's vested benefits are paid in full to his or her spouse in the event
    of the retiree's premature death. Another distribution option of a qualified ...

  • Bet Smarter With The Monte Carlo Simulation

    http://www.investopedia.com/articles/07/monte_carlo_intro.asp
    ... the uncertainty of an input value by a probability distribution that does ... Setting
    appropriate exit points should help you avoid taking premature profits or ... ...

  • 9 Penalty-Free IRA Withdrawals

    http://www.investopedia.com/articles/retirement/02/111202.asp
    ... an additional 10% early-distribution penalty on any taxable amount. The IRS imposes
    this penalty to deter individuals from taking premature distributions from ...

  • Did Your Roth IRA Conversion Pass or Fail?

    http://www.investopedia.com/articles/retirement/03/082703.asp
    ... Premature Reconversion With the frequent market fluctuations, many taxpayers converting
    their ... Minimum Distributions If a required minimum distribution (RMD) is ...

  • Stock Market Risk: Wagging The Tails

    http://www.investopedia.com/articles/financial-theory/09/bell-curve-wag-tails.asp
    ... shorter time periods, stocks tend to break away from a normal distribution. ... Setting
    appropriate exit points should help you avoid taking premature profits or ...

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