10 Biggest Retirement Mistakes: #7. Interrupting Early IRA Payouts

A way exists to avoid early withdrawal penalties if you tap your IRA before you are 59 ½.

You must take “substantially equal periodic payments" from your IRA based on your life expectancy for at least five years or until you are 59 1/2, whichever is longer.

But if you deviate from the payout schedule, you'll owe a 10% penalty retroactive to your first withdrawal, plus interest.


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