IRS makes it easier to tap retirement accounts for emergencies

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The Internal Revenue Service (IRS) has introduced a new provision allowing individuals to withdraw up to $1,000 from their retirement accounts penalty-free for personal emergencies. Bill Harris, Evergreen Money Founding CEO of and former CEO of Intuit, PayPal, and Personal Capital, joins Wealth! to discuss the implications of this change.

Harris views this move as part of the IRS's broader effort to become more "customer-centric." He notes that this initiative aligns with other recent improvements, such as enhanced telephone support and the introduction of free tax return software.

Harris points out that many individuals are struggling to handle emergencies due to depleted savings and this new retirement law provision aims to provide some relief in such situations. This option is available to anyone with a 401(k) or IRA. However, Harris notes individuals can only take advantage of this penalty-free withdrawal once per year.

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This post was written by Angel Smith