Can I make early withdrawals from a 403(b)?

However, you may be subject to a 10% penalty on the withdrawal on top of any income taxes owed. In some cases, however, you can make early withdrawals from a 403 (b) without paying a penalty. Similar to a 401 (k), 403 (b) account holders can start taking distributions in the year they leave work as long as they turn 55 or older in that same year.

What are the rules for 403(b) withdrawals?

There are quite a few rules to understand about 403 (b) withdrawals. They pertain to: Standard withdrawal. Early withdrawals. Required minimum distributions. 403 (b) rollover options. 403 (b) loans. To access funds in your retirement account, you'll need to qualify through one of the following measures: Reach age 59 1/2.

What is a 403(b) early withdrawal penalty?

The amount of the early withdrawal penalty from a 403 (b) retirement account is typically 10% of the distribution. This penalty is levied in addition to any regular income taxes due on the withdrawal. Therefore, an early withdrawal can result in a significant reduction of the total amount received.