Premature Distribution

Description and Definition of Premature Distribution

A withdrawal from a qualified retirement plan before age 59 1/2. Withdrawals from company retirement plans are subject to a 10% penalty if you're under age 55 if you've left the job – or under age 59-1/2 if you're still employed. You must pay a penalty on premature distributions unless you meet specific exceptions.

Resources

See Also

Further Reading

• Premature Distribution in the West's Tax Law Dictionary
• Premature Distribution in “A Dictionary of Taxation”