topic How do I reduce my penalty from "withdrawing" from my retirement early? in Retirement tax questions

How do I reduce my penalty from "withdrawing" from my retirement early?

squireme02 — Thu, 06 Jun 2019 09:43:57 GMT

I changed employers and the retirement company stated since the amount was so small, they had to cash it out to me. I never electively withdrew from the account.

You could have rolled the money tax free into a Tradition...

macuser_22 — Thu, 06 Jun 2019 09:43:59 GMT

You could have rolled the money tax free into a Traditional IRA within 60 days of the distribution. The company should have notified you of your options. If you took the money in cash and are under age 59 1/2 then the penalty applies.