IRS introduces penalty-free retirement account access

The Internal Revenue Service (IRS) has introduced a new provision allowing individuals to withdraw up to $1,000 from their retirement accounts penalty-free for personal emergencies. Bill Harris, Evergreen Money Founding CEO of and former CEO of Intuit, PayPal, and Personal Capital, joins Wealth! to discuss the implications of this change.
Harris views this move as part of the IRS's broader effort to become more "customer-centric." He notes that this initiative aligns with other recent improvements, such as enhanced telephone support and the introduction of free tax return software.
Harris points out that many individuals are struggling to handle emergencies due to depleted savings and this new retirement law provision aims to provide some relief in such situations. This option is available to anyone with a 401(k) or IRA. However, Harris notes individuals can only take advantage of this penalty-free withdrawal once per year.
#youtube #IRS #retirement

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[NicholasBall]

Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?

[leondonald]

The concept of mini-retirement changed my life. I'm no longer waiting for some retirement paradise when I'm 65. It helps to know how to fund the lifestyle. You know, making money while you sip that piña colada by the beach does help. I wouldn't have been able to do it otherwise.

[brucewayne]

If there's an emergency... It's not gonna be $1k.

[claudeclarke]

$1000 bucks should be $5000 with inflation as it is!

[clifftanch]

$1, 000 is trivial. $3, 000 or $5, 000 would be far more helpful.

[missnlahi]

The fact that they can make this allowance with ease means they can do much more

[stevenh]

The amount should at least be 10%-20% of a vested balance. $1k won’t do a thing.

[nicolasbenson]

Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.

[gk]

$1000?? Is IRS even aware of what $1000 can even buy?

[stewey]

OH how generous of them to allow people to have access to their own money (Sarcasm)

[AgentPanda]

What personal emergency costs less than 1000. Last that I know, a medical emergency is over 1000.

[xst-k]

$1000? Great now I can make 1 or 2 grocery runs

[Phlegethon]

$1000? What’s the personal emergency you need three nights in a hotel?

[realnapster]

It should be at least $10, 000 penalty free. $1000 won’t even buy an iphone now 😂

[kungdu]

1k? Dumb as hell. It should be at least 3K to 5k.

[karlhernandez]

The IRS is allowing us to use our money without penalty huh?

Why are they even still around?

[hunnybunny]

There are many other ways to withdraw more than $1k from retirement accounts early and without penalty: 72t, Roth conversion ladder, Roth IRA contributions, rule of 55

[joebrennan]

You know it's going to be a good video when he explains "Internal Revenue Service, a.k.a the IRS."

[xlerb]

I have no trouble with allowing emergency withdrawals without penalty. But a lot of people are just going to use it as a way to drain $1K from their retirement investments. Bill mentioned you already can take out money penalty free - you just have to work with your employer. Well, what a person does with their money is their business.

[josephgolini]

This guy is dead ass serious like 1000 can actually help you 😆 🤣 😂