In this episode, we break down the important age milestones and rules you need to know for penalty-free withdrawals from your 403(b) account. Generally, you’ll need to wait until age 59 ½ to avoid the IRS’s 10% early withdrawal penalty, but there are specific exceptions that can allow earlier access without penalty.

We’ll start by exploring the standard rule and then dive into the “Rule of 55,” which allows penalty-free withdrawals if you leave your job in or after the year you turn 55. We’ll also cover several other exceptions, like withdrawals for disability, certain medical expenses, and Qualified Domestic Relations Orders (QDROs). Plus, we’ll discuss the option of Substantially Equal Periodic Payments (SEPP) for those seeking a structured withdrawal method before age 59 ½.

Remember, while you may be able to avoid penalties, income ...