@horsechick48 wrote:
If both parents have separate IRA or 401k accounts can both parents withdraw the $5000 for after childbirth and be exempt from the early withdraw of 10%. I assume that money is still taxed by state and federal taxes.
Yes, each parent can separately withdraw up to $5000.
However, if a person has both an IRA and a 401k, the $5000 limit is per taxpayer, not per account.
And finally, the withdrawal only counts if it is made within 1 year starting on the date of birth or the date the adoption is finalized. Withdrawals for pre-planning expenses are not eligible for the exception. And if your child is born on (for example) July 1, 2024, you don't get to withdraw $5000 on August 1, 2024, and another $5000 on January 1, 2025. The limit is $5000 per taxpayer for qualifying birth or adoption, not $5000 per year.
