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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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I decided to retire at 57. I have no income, and would like

Customer Question

I decided to retire at 57. I have no income, and would like to begin withdrawing from a 403(b) plan to purchase a home and use for living expenses. Am I still subject to the 10% early withdrawal penalty? This is not a first-time home purchase. Thanks -
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Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

In general - yes - because you are below 59 1/2.

Expert:  Lev replied 9 months ago.

However - there are some exemptions you might be eligible to use.
Specifically,

section 72(t)(2)(A)(v) allows such exemption for the employee who separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit plan).

Let me know if you need any help with reporting.

Otherwise,

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