The 2022 SECURE 2.0 retirement savings law has over 90 new provisions to help people with their retirement funds. With the new, increased contributions to members 401k accounts and these new laws there are more options than ever before.
One of the best is the provision that allows members to withdraw $1,000 penalty-free for emergencies.
Another option that hopefully won’t be needed allows victims of domestic abuse to withdraw $10,000 without paying the 10% penalty.
Kiplinger’s Finance describes these benefits like this…
That emergency distribution of up to $1,000, could only be taken once during the year, but won’t be subject to the usual additional 10 percent tax that applies to early distributions. But: if you choose not to repay the distribution within a certain time, you won’t be allowed to take other emergency distributions for three years.
Also, under SECURE 2.0, penalty-free withdrawals, on small amounts of money from retirement plans in cases involving domestic abuse, will be allowed.
( graphic via freepik)
