I think the authors of that notable instrument intended to include all men, but they did not mean to declare all men equal in all respects. They did not mean to say all men were equal in color, size, intellect, moral development, or social capacity. They defined with tolerable distinctness in what they did consider all men created equalâequal in certain inalienable rights, among which are life, liberty, and the pursuit of happiness. This they said, and this they meant.
Take care to avoid these five significant retirement penalties: IRA early withdrawal penalty. If you withdraw money from your IRA before age 59Â½, you will generally have to pay a 10 percent early withdrawal penalty in addition to income tax on the amount withdrawn. So, if you withdraw $5,000 from your IRA at age 40, youâll need to pay a $500 tax penalty.
Once you reach that magic age, you can take out as much money as you want, in a lump sum or periodic payments, all subject to specific tax rules. Equal Payments One way to withdraw money from a traditional IRA early without the tax penalty is to take substantially equal periodic payments. This is a withdrawal plan that draws out a certain percentage of your contributions each year, based on an IRS formula for the amount in your fund and your life expectancy.