Financial Focus What to know about early IRA withdrawals While you're working. you may be contributing to an individual retirement account (IRA), which can qualified higher education expenses for you, your provide a tax-advantaged way to save for your future. spouse, children or grandchildren. However, since So, is it ever a good idea to tap into your IRA before you retire? Ideally, you should leave this account intact until your retirement. After all, you could spend two or more decades in retirement, so you'll need a lot of financial resources. Still, life is unpredictable, so there may be times you'll consider taking money from your IRA. You'll need to be aware, though, that if you withdraw funds before you turn 59%, you will home purchase. generally trigger a 10% penalty. Plus, you'll be taxed on whatever you take out, thereby losing, at least in part, the benefits of tax-deferred earnings offered by a up to $5.000 from your respective IRA without pay- opening a line of credit. A financial professional can traditional IRA. (With a Roth IRA, you can withdraw ing the 10%penalty. your contributions free of taxes and penalties, but the earnings may be taxed and penalized if you take them out before you're 594.) If you need to withdraw funds from your IRA before you're 59½, you may be able to avoid the 10% 7.5% of your adjusted gross income. You may also early withdrawal penalty if you meet an exception, such as one of these: Paying for college - You are allowed to take penalty-free withdrawals to pay for tuition and other withdrawal penalty also may not apply. These aren't the only exceptions to the 10% withdrawal penalty, but they do cover many of the common reasons that people may consider an early the withdrawals may be considered taxable income, they could reduce the student's eligibility for financial withdrawal from their IRAS. And if you do need to aid. Buying a first home - You and your spouse can each withdraw up to $10,000 from your respective IRAS to buy your first home. To qualify as a first-time homebuyer, you (and your spouse) need to have not owned a home for the two years preceding your your IRA early. One proven technique is to build take an early withdrawal, consult with your tax advi- sor to determine your eligibility for avoiding the 10% penalty. Keep in mind, though, that you do have ways to potentially reduce the necessity of withdrawing from Having a child - Following the birth or adoption of a child, you and your coparent can each withdraw kept in a liquid account. You might also consider an emergency fund containing at least three to six months' worth of living expenses, with the money help you explore other options, as well. Ulimately, if you can leave your IRA intact until you retire, you'll be helping yourself greatly. But if you do need to tap into your account early, at least be familiar with the possible drawbacks - and how you might avoid them. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC Covering medical expenses You may be able to avoid the early withdrawal penalty if you use the money to pay for unreimbursed medical expenses (for you, your spouse or dependents) that exceed qualify to take a withdrawal without penalty to pay for health insurance premiums if you are un- employed. In the case of a disability, the 10% early Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS Edward Jones Pam Covington OFP AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert AAMS Edward Jones Karen Rupert AAMS Financial Advisor Financial Advisor Financial Advisor 7525 West Jetterson Bivd. Fort Wayne, IN 4604 Financial Advisor Financial Advisor 2030 Pointe tnverness Wey, Suite 125 Fort Wayne, IN 45804 432-3613 Making Sense of Investing Financial Advisor Financial Advisor Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne. IN 14 karenupertdedwardjones.com 263-4760 991 Chestnut Hil Parkway Fort Wayne, IN 4G814 6525 Constitution Dr. Fort Weyne, IN 40804 7329 West Jetferson Bivd. Fort Wayne, IN 46804 14413 inois Rd SeE Fort Wayne. IN 46814 414 S Scon Rd. Fort Wiyne, IN 4a14 625-5700 Making Sense of Investing 432-0304 Making Sense of Investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of Investing Making Sense ef Investing Financial Focus What to know about early IRA withdrawals While you're working. you may be contributing to an individual retirement account (IRA), which can qualified higher education expenses for you, your provide a tax-advantaged way to save for your future. spouse, children or grandchildren. However, since So, is it ever a good idea to tap into your IRA before you retire? Ideally, you should leave this account intact until your retirement. After all, you could spend two or more decades in retirement, so you'll need a lot of financial resources. Still, life is unpredictable, so there may be times you'll consider taking money from your IRA. You'll need to be aware, though, that if you withdraw funds before you turn 59%, you will home purchase. generally trigger a 10% penalty. Plus, you'll be taxed on whatever you take out, thereby losing, at least in part, the benefits of tax-deferred earnings offered by a up to $5.000 from your respective IRA without pay- opening a line of credit. A financial professional can traditional IRA. (With a Roth IRA, you can withdraw ing the 10%penalty. your contributions free of taxes and penalties, but the earnings may be taxed and penalized if you take them out before you're 594.) If you need to withdraw funds from your IRA before you're 59½, you may be able to avoid the 10% 7.5% of your adjusted gross income. You may also early withdrawal penalty if you meet an exception, such as one of these: Paying for college - You are allowed to take penalty-free withdrawals to pay for tuition and other withdrawal penalty also may not apply. These aren't the only exceptions to the 10% withdrawal penalty, but they do cover many of the common reasons that people may consider an early the withdrawals may be considered taxable income, they could reduce the student's eligibility for financial withdrawal from their IRAS. And if you do need to aid. Buying a first home - You and your spouse can each withdraw up to $10,000 from your respective IRAS to buy your first home. To qualify as a first-time homebuyer, you (and your spouse) need to have not owned a home for the two years preceding your your IRA early. One proven technique is to build take an early withdrawal, consult with your tax advi- sor to determine your eligibility for avoiding the 10% penalty. Keep in mind, though, that you do have ways to potentially reduce the necessity of withdrawing from Having a child - Following the birth or adoption of a child, you and your coparent can each withdraw kept in a liquid account. You might also consider an emergency fund containing at least three to six months' worth of living expenses, with the money help you explore other options, as well. Ulimately, if you can leave your IRA intact until you retire, you'll be helping yourself greatly. But if you do need to tap into your account early, at least be familiar with the possible drawbacks - and how you might avoid them. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC Covering medical expenses You may be able to avoid the early withdrawal penalty if you use the money to pay for unreimbursed medical expenses (for you, your spouse or dependents) that exceed qualify to take a withdrawal without penalty to pay for health insurance premiums if you are un- employed. In the case of a disability, the 10% early Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS Edward Jones Pam Covington OFP AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert AAMS Edward Jones Karen Rupert AAMS Financial Advisor Financial Advisor Financial Advisor 7525 West Jetterson Bivd. Fort Wayne, IN 4604 Financial Advisor Financial Advisor 2030 Pointe tnverness Wey, Suite 125 Fort Wayne, IN 45804 432-3613 Making Sense of Investing Financial Advisor Financial Advisor Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne. IN 14 karenupertdedwardjones.com 263-4760 991 Chestnut Hil Parkway Fort Wayne, IN 4G814 6525 Constitution Dr. Fort Weyne, IN 40804 7329 West Jetferson Bivd. Fort Wayne, IN 46804 14413 inois Rd SeE Fort Wayne. IN 46814 414 S Scon Rd. Fort Wiyne, IN 4a14 625-5700 Making Sense of Investing 432-0304 Making Sense of Investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of Investing Making Sense ef Investing