exception to 10% penalty for “public safety officers”
I have many clients that work with the local law enforcement agency here. We have heard that you can withdrawal IRA funds prior to age 59 1/2 without penalty if you are a “public safety officer”. They have to be at least age 50 to use this exception. Is this correct?
Permalink Submitted by Brian Mell on Mon, 2014-11-03 19:16
This might be where that is coming from:Excerpt 1 from Page 3, Instructions for Form 5329″01 Qualified retirement plan distributions (does not apply to IRAs) you receiveafter separation from service in or after the year you reach age 55 (age50 for qualified public safety employees).”
Permalink Submitted by mk foss on Tue, 2014-11-04 01:52
The exception applies to public safety officers who are at least 50 participating in a 414(d) defined benefit government plan. It does not apply to IRAs or defined contribution plans.