If you withdraw money from a retirement account before age 59.5, you will likely be subject to an additional 10% penalty on total withdrawals. There are many exceptions to this penalty and Secure 2.0 Act adds a few more to the list. In 2023, new exceptions include terminal illness, income attributable to excess contributions or a qualified disaster. Beginning in 2024, new exceptions will include expenses from financial emergency and victims of domestic abuse.
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