Monday, July 15, 2024

IRA: Can Tap $1,000 In Emergencies -- July 15, 2024

The bill was passed in 2022.

The bill goes into effect in 2024. It took that long for the IRS to finalize the rules after the law was passed.

One can remove up to $1,000 from an IRA for "an emergency."

Lots of small print.

Link here

It's almost ridiculous but it is an interesting wrinkle. 

Only one emergency withdrawal per year; must be paid back within three years without incurring a taxable event.

The withdrawal cannot drop one's IRA below $1,000. Example: if one's IRA is worth $1,500, one can only withdraw $500.


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