A withdrawal before age 59 1/2 from a qualified retirement plan, usually accompanied by a penalty.
A non-qualified distribution received from a qualified retirement plan before age 591/2. The distribution may be subject to federal income tax, state income tax and a 10% premature distribution penalty.
A distribution from an IRA before the owner reaches age 59-1/2. Generally, a 10% penalty tax is owed on the distribution. Also known as an early distribution or an early withdrawal.
private letter ruling property tax
Premature distributions are amounts withdrawn from a Traditional, SEP or SIMPLE IRA before the age of 59½. The taxable amount of the premature distribution must be included as gross income on the client's tax return. Premature distributions may be subject to penalty. See Premature Distribution Penalty below.
Withdrawals made from certain tax-favored plans may be subject to an additional 10% federal income tax if the withdrawal is made before the contract owner reaches age 59-1/2. Certain exemptions do apply.