NewGuy
New Member

Retirement tax questions

You can start taking distributions subject to the following from IRS Tax Topic 558:
Distributions made as part of a series of substantially equal periodic payments over your life expectancy or the life expectancies of you and your designated beneficiary. If these distributions are from a qualified plan other than an IRA, you must separate from service with this employer before the payments begin for this exception to apply.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/taxtopics/tc558.html">https://www.irs.gov/taxtopics/tc558.html</a>
Lump sum distributions would incur the penalty.