Articles on Stock markets

News, Research and Analysis

Help Center
Introduction
Investment Portfolios
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal Finance
Corporate Basics

What are the Withdrawal Rules for My Keogh Plan?

Withdrawal rules for Keoghs will be essentially the same as rules for IRAs and 401(k)s. Once you are age 59½, you may begin to make penalty-free withdrawals and only pay income taxes on the amount you withdraw, similar to a traditional IRA. If you decide to withdraw money before age 59½, you may have to pay a 10% penalty fee in addition to income taxes on the amount of your withdrawal.

Of course, there are exceptions. One exception for most qualified plans is for employees who separate from service at or after age 55: this is the early retirement exception, and the 10% penalty will not apply. Keoghs will technically use the early withdrawal rules for 401(k)s and not IRAs, which differ slightly.

Once you turn 70½, you must begin to withdraw minimum amounts each year known as RMDs (Required Minimum Distributions), which are determined by the IRS using age-based factors. You do not have to take RMDs if you are still working at the company. The defined benefit and money purchase Keoghs out there may have different withdrawal rules.

How much should I withdraw from my retirement accounts once I retire?
What role does inflation play in my retirement planning?
What are the Contribution Limits for My Keogh Plan?

Keywords: household income, retirement accounts, RMDs, 401(k)s, IRAs, early withdrawal penalty,
What is a REPO?What is a market neutral fund?What are some Good Books on Investment?