{"id":353922,"date":"2015-02-25T14:19:40","date_gmt":"2015-02-25T19:19:40","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/socialsecurity\/retirement-planning\/early-retirement-withdrawal-get-your-money-early-without-a.html"},"modified":"2026-03-06T09:59:58","modified_gmt":"2026-03-06T14:59:58","slug":"early-retirement-withdrawal-get-your-money-early-without-a","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/socialsecurity\/retirement-planning\/early-retirement-withdrawal-get-your-money-early-without-a.html","title":{"rendered":"Legal Issues with Early Retirement Withdrawals: When You Need an Attorney"},"content":{"rendered":"\n
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Legal Issues with Early Retirement Withdrawals: When You Need an Attorney<\/h1>\n\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Early withdrawals from retirement accounts<\/span> such as a 401(k) or IRA before the owner reaches age 59 1\/2 can trigger taxes as ordinary income<\/span> and a 10% penalty. There are exceptions to the early withdrawal penalty<\/span> such as if the owner is disabled, has medical expenses<\/span>, or a Qualified Domestic Relations Order (QDRO).<\/p>\n\n <\/div>\n\n\n\n

Withdrawing retirement savings<\/span> before age 59\u00bd can trigger a 10% early withdrawal penalty<\/span> on top of regular income taxes<\/span>. Understanding the legal rules that apply and knowing when to seek legal help can help protect your retirement savings<\/span>.<\/p>\n

Early distributions<\/span> from retirement accounts<\/span> can be costly. In addition to the penalty tax<\/span>, the legal issues associated with early withdrawals from retirement savings<\/span> can be complex.<\/p>\n

This article explains the legal rules governing early retirement withdrawals, common disputes that can arise, and when working with an attorney might be worth it. If you’re already dealing with a retirement withdrawal dispute or an IRS<\/span> penalty, a\u00a0tax attorney<\/a>\u00a0or\u00a0ERISA attorney<\/a>\u00a0can help you understand your options and protect your interests.<\/p>\n

Understanding the 10% Early Withdrawal Penalty<\/span><\/strong><\/h2>\n

Taking money out of a traditional IRA<\/span> or employer-sponsored retirement plan<\/span> before age 59\u00bd is often considered an early withdrawal by the IRS<\/span>. As a taxpayer<\/span>, you\u2019ll owe a 10% penalty<\/a> in addition to the regular income taxes<\/span> that you have to pay on that amount. However, the IRS<\/span> allows penalty-free<\/span> withdrawals in certain scenarios. Some of the most\u00a0common exceptions<\/a>\u00a0include:<\/p>\n