[Alberta's Child]

The laws surrounding IRAs and 401(k) accounts are very complex. I believe there are some creative ways to "cash out" of these instruments without paying the penalties, if it is done correctly and the transactions all meet the letter of the law. It's important to remember that the tax code may treat three different parts of your retirement savings differently. These three include:

1. Tax-deferred income that you contributed to your retirement plan.

2. Matching contributions from your employer(s).

3. Tax-deferred growth is the third element of your retirement plan.

I'm not a lawyer or a CPA, but a good one should be able to provide some guidance on this.

[Engedi]

Not sure if folks know this rule about early withdrawal.

If you have a 401K, 403B, and you are eligible to retire from your employer and are not 59 1/2, you will not be penalized if you withdraw.

However, this law does not apply if you have IRA.

I am eligible to retire via my work(age plus years worked needs to equal a certain number), however, I am 56. I can retire and withdraw all of it and just owe the taxes, but no penalty. It’s all in 403B.