IRS Archives

Crucial Facts to Understand About 401(k) Hardship Loans

If you are experiencing an “immediate and substantial financial need,” the IRS may grant permission for a 401(k) hardship withdrawal. When facing financial difficulties, you may have contemplated tapping into your 401(k) plan for assistance. While there are situations in which current employees can make 401(k) withdrawals, certain conditions must be met to avoid penalties associated with early withdrawals from your retirement account. To gain insight into the process of obtaining a 401(k) hardship withdrawal, …

Your tax refund is in danger: Learn how to protect it now

As the tax filing season approaches, the Internal Revenue Service (IRS) is warning taxpayers and tax professionals to remain vigilant against emerging scams and safeguard sensitive information. IRS Commissioner Danny Werfel emphasized the relentless nature of identity thieves, emphasizing the need for people to exercise caution with their personal data and to be wary of email and text-based scams. Werfel warned that during tax season, scammers frequently impersonate the IRS, state tax agencies, or other …

Are You Unretiring? Here Is What You Need To Know

Rising inflation and an abundance of job vacancies may entice some retirees to return to the labor market. However, if you’re currently receiving Social Security retirement benefits and you’re considering working, there are a few things you should consider first.

Retirement Plan and Required Minimum Distributions: How to Calculate?

No matter how far or close you are to retirement, you probably understand the importance of saving for the future. Something we don’t talk about as much is withdrawing your money when you reach retirement age.
You may already be aware that you must wait until a certain age (59.5) before withdrawing funds from retirement accounts penalty-free.
However, read on more to be informed on what the penalties are if you do not withdraw enough money after age of 72.