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In 2024, the penalty for early withdrawals from retirement accounts—normally 10% before age 59½—will be waived up to $1,000 annually for emergencies. These withdrawals must be repaid within three years, barring other specific exceptions. This offers temporary relief for urgent needs without the heavy penalty, providing greater flexibility for unforeseen circumstances.
IRA Regulations and Adjustments
Increased RMD Age for IRAs
Similar to 401(k)s, the age for RMDs from IRAs has been raised from 72 to 73 starting in 2023, and will further increase to 75 in 2033. An important distinction is that Roth IRAs are not subject to RMDs, making them an attractive option for those seeking to keep their funds intact through retirement.