10% penalty waived for Firefighters that are retired
Hello,
Do firefighters that are retired bypass the 10% penalty when doing a distribution out of their retirment account (IRA or 401(k)) according to the 2007/2008 president Bush allowing that?
Hello,
Do firefighters that are retired bypass the 10% penalty when doing a distribution out of their retirment account (IRA or 401(k)) according to the 2007/2008 president Bush allowing that?
Permalink Submitted by Alan Spross on Thu, 2010-06-03 22:07
Sec 828 of the Pension Protection Act of 2006 provides that certain public safety employees (including firefighters) can take distributions from a DEFINED BENEFIT plan at age 50 or later without the early withdrawal penalty.
However, this does not extend to other types of retirement plan distributions, eg IRA accounts.