Dipped into Your Retirement Account in 2021? Here’s What Happens Next

Dipped into Your Retirement Account in 2021? Here's What Happens Next

If you pulled money from your account in 2021, what does that mean for you?  

Dipped into Your Retirement Account in 2021? Here's What Happens NextDepositphotos.com contributor/Depositphotos.com – MarketBeat

Congress allowed retirement savers to take out as much as $100,000 from individual retirement accounts by the end of December 2020 without the 10% early withdrawal penalty (for those younger than age 59½). Fidelity Investments said that 1.6 million people, or 6.3% of eligible participants, took money out of their retirement plans with Fidelity.

But now that the end of December 2020 is a distant memory (a whole year ago!), what does that mean for you in December 2021? Let’s find out.

What Happens When You Take Money Out of Retirement Accounts Early?

Here’s what you’ll need to remember when you take money out of your retirement accounts early.

1. You may owe taxes and other penalties.

If you withdraw from a traditional, rollover, SEP or SIMPLE IRAs before…

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