10% excise tax | Ed Slott and Company, LLC

10% excise tax

Question:

Police officer retiring from city in Texas, Age 53, rolling over from pension to IRA. IRS provided special provision attached to PPA 06 allowing police officers to avoid the 10%excise tax when rolling over and accessing $ from IRA prior to Age 59 1/2. I have had varying answers to the affirmative. Anyone have any familiarity with this one?

thank you,
Keith

Sec 828 of the PPA waives the 10% early distribution penalty on defined benefit plan distributions at age 50 for public safety personnel. As noted, this waiver only applies to defined benefit plan distributions, not distributions from an IRA, 403b, 401k etc.

Much appreciated. Thank you,Keith

 

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