Domestic Abuse Victims allowed Penalty-free Withdrawal from Retirement Plans

Apr 21, 2023 | 2024, Retirement Plan Law

Participants who experienced domestic abuse are allowed to withdraw the lesser of $10,000, indexed for inflation, or 50% of the participant’s vested account. Distributions are not subject to the 10% tax on early distributions made under this provision. Participants may repay this money back to the plan over 3 years and apply for a refund for income taxes.

Tags

View Another Year:

Have questions how this information applies to your situation?

Reach out us. We’re here to help.