The Wall Street Journal

Sometimes in an emergency you just have to break the glass.

While tapping a retirement plan for an early withdrawal should always be a last resort, it can be unavoidable. The cause could be a job loss, a natural disaster like a wildfire, or even an opportunity like a coveted house for sale.

Parents with leftover money in college funds can now move them to retirement accounts—maybe even their own. But should they?

When Congress passed the Secure 2.0 Act in late 2022, retirement savers cheered at a host of changes in rules for required minimum distributions from tax-deferred accounts like IRAs.

Some of the changes are straightforward—such as raising the starting age for RMDs to 75 in 2033 from 73 today and 72 last year (and up from 70½ as recently as 2019).

The last Tax Report examined a new law requiring greater use of Roth 401(k) plans by older, higher-earning savers, and it prompted a flood of questions from readers about traditional and Roth IRAs and 401(k)s and similar plans.

Millions of high-earning Americans are slated to lose a popular tax deduction starting next year.

Savers ages 50 and older can make catch-up contributions in their 401(k) accounts each year, with eligible workers allowed to put an extra $7,500 into their accounts, for a total of $30,000, this year.

The Secure 2.0 Act, passed in December, contains more than 90 provisions affecting retirement-savings plans, such as individual retirement accounts and 401(k) workplace plans.

Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer.

The bill nearing approval raises the age people are required to start withdrawing money from tax-deferred retirement accounts to 75 from 72.It increases retirement savings contribution limits for older workers and provides an increased incentive to people with low and moderate incomes to save in retirement accounts

Millions of retirees will get friendly reminders from their banks and brokerages in coming weeks to take required withdrawals from their 401(k)s or other retirement accounts by the end of the year.

The annual ritual might feel particularly painful this time, with the S&P 500 down nearly 25% for the year through September.Many retirees will have to withdraw and pay taxes on a bigger percentage of their nest eggs than they might prefer, because the formula for calculating the required minimum distribution, or RMD, is based on the account’s balance at the end of last December—before the markets sagged.

Florida residents who suffered financial losses from Hurricane Ian might be able to tap their retirement accounts to cover emergency expenses, a last resort more victims of natural disasters are using.

Is there a recommended strategy for taking required withdrawals from retirement savings in this horrible market? I’m a buy-and-hold investor; normally, I would just hunker down, not look at my balances, and ride out this storm. Unfortunately, the Internal Revenue Service makes me sell stocks at the worst time. Any recommendations for this unprofitable task?