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This tax is in addition to the ordinary income tax that applies to most retirement plan withdrawals.
There have long been a number ofstandard exceptions to this penalty.
If that money isnt replaced within three years,no additional withdrawalsduring that time period would be allowed.
What Do the Experts Say?
However, thenew emergency provisiongarners support from many financial experts.
Its not for getting FOMO and wanting to go on a trip with your friends, Lester says.
Others suggest that even a $1,000 emergency withdrawal should be avoided due to the financial consequences.
He and other experts suggest trimming expenses or boosting your income instead.
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