- Revenue Cycle Management
- COVID-19
- Reimbursement
- Diabetes Awareness Month
- Risk Management
- Patient Retention
- Staffing
- Medical Economics® 100th Anniversary
- Coding and documentation
- Business of Endocrinology
- Telehealth
- Physicians Financial News
- Cybersecurity
- Cardiovascular Clinical Consult
- Locum Tenens, brought to you by LocumLife®
- Weight Management
- Business of Women's Health
- Practice Efficiency
- Finance and Wealth
- EHRs
- Remote Patient Monitoring
- Sponsored Webinars
- Medical Technology
- Billing and collections
- Acute Pain Management
- Exclusive Content
- Value-based Care
- Business of Pediatrics
- Concierge Medicine 2.0 by Castle Connolly Private Health Partners
- Practice Growth
- Concierge Medicine
- Business of Cardiology
- Implementing the Topcon Ocular Telehealth Platform
- Malpractice
- Influenza
- Sexual Health
- Chronic Conditions
- Technology
- Legal and Policy
- Money
- Opinion
- Vaccines
- Practice Management
- Patient Relations
- Careers
Exception to early IRA withdrawal penalties
Learn whether you can avoid penalties if you withdraw early from your IRA.
Q: My practice has not been doing well financially, so I'm considering taking funds from my IRA. I've heard I can avoid some penalties for early withdrawal through something called the 72(t) exception. Is this true?
A: Taxable amounts you withdraw from an invididual retirement account (IRA) or qualified retirement plan before age 59½ are generally subject to a 10% premature distribution tax penalty. Section 72(t) of the Internal Revenue Code, however, makes exceptions to this tax.
Any of these methods may involve the use of a life expectancy table, an appropriate interest rate, and an initial IRA or retirement plan account balance valuation date. To ensure that your distributions qualify for the exception, you should consult an accountant, attorney, or financial planner who is well-versed in income tax and retirement planning.
Send your money management questions to medec@advanstar.com
. Answers to our readers' questions were provided by Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF, founder of Physician Financial Services, Woodbury, New York.
