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• When deciding whether to withdraw, it is crucial to take the state of the market into account. Retirement Plans and Penalties Associated with Age. Timing is even more important when taking money out of a retirement account because of age-related penalties and potential tax ramifications. Unless they are eligible for special exceptions, people under the age of 59½ normally incur an early withdrawal penalty of 10% on retirement accounts. Determining the best time to take withdrawals from retirement accounts requires an understanding of your long-term investment strategy as well as your immediate financial needs. Choosing the Best Time to Withdraw for Better Results.
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