Withdrawals from a 403(b) plan are subject to specific rules:
- Early Withdrawals: Generally, withdrawals before age 59½ are subject to a 10% early withdrawal penalty, in addition to regular income tax. - Required Minimum Distributions (RMDs): Starting at age 73, participants must start taking RMDs. Failure to do so can result in significant tax penalties. - Hardship Withdrawals: Some plans allow for hardship withdrawals under specific circumstances, such as medical expenses or preventing eviction, but these are still subject to taxes and penalties.
