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Practice Management

Early Distributions in the Year One Turns 59½ Penalized?

Q. A 403(b) account holder will be turning age 59½ in November of this year. Can he or she take a distribution earlier in the year and avoid the 10% penalty for a distribution before he or she attains age 59½?

A. No. A 403(b) account holder must have attained age 59½ as of the date of the distribution.