What Qualifies As Early Retirement And How Does That Normally Work?

What qualifies as early retirement and how does that normally work? The age of 59 1/2 is the magic number according to the IRS when considering retirement without penalty. Early is a wide-open adjective...

Early is a wide-open adjective to somebody that might be before 65. Today often people are looking to retire because they have help and they have the resources that they look to enjoy life outside of their work for a longer period of time. While it's harder to put an age on living longer without an income stream from a job, There is a kind of a golden age inside of the IRS, its 59 ½ and maybe that's a good point. A good thought as to what might be early retirement would be before 59 ½. After 59 ½ you can access your IRAs, your 401K plans and an annuity without a penalty clause from the IRS. Prior to that, you would have a penalty clause. You still have an income tax that's most likely on the funds being the first from IRAs and annuity but you wouldn't have a penalty.

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