Pension early withdrawal penalty exceptions

A provision of the SECURE 2.0 Act allows for exceptions to the additional 10% tax when taking early permissible retirement plan distributions for emergency personal expenses and for victims of domestic abuse. These are distributions taken before age 59½. IRS Notice 2024-55 provides guidance on the provision that went into effect Jan. 1, 2024. It defines emergency personal expense distributions, including what’s an unforeseeable or immediate financial need, and describes the limits (amount and frequency) of distributions. In addition, the notice defines domestic abuse victim distributions, including a definition of domestic abuse. For additional information: https://bit.ly/4eCwz1t