Mary Grace Graniero

When planning for retirement, tax-advantaged accounts are some of the most common tools that individuals utilize as a vehicle for achieving their long-term goals. This includes IRAs, 401(k)s, 403(b)s, and non-qualified annuities. Each of these accounts have their own unique benefits and limitations, but one thing they all have in common is that they require you to reach age 59 ½ before being able to take penalty-free distributions. However, Section 72(q)/72(t) of the tax code provides a distribution method that will allow you the flexibility to draw on those funds, penalty-free, before the age of 59 ½.