Accessing 403b funds without age penalty

blitzc

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As a state teacher for 32 years, I paid into a 403b annuity retirement account. But now that I am not working anymore due to my diagnosis, I noticed I would pay a 10% penalty on withdrawals prior to being 59 1/2 years of age. At the age of 55, I need to use these funds for my care. Plus we are trying to enjoy travel right now, not in the future.

Does anyone have any experience with these situations? I don't have 4 years to wait!
 

Nikki J

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I believe permanent disability is a penalty exception. Of course you will still owe taxes
 

KarenNWendyn

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I think Nikki is correct. You could check with the retirement account manager or an accountant to be sure.
 

Nikki J

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There is a tax form for iras and 401ks and you need a letter from your doctor dated before the withdrawal. I think the form is the same for all retirement accounts but as Karen says plan admin and accountant
 

blitzc

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I was hoping this could be the case. We don't have a financial planner...I've done everything myself all these years.
So I can call my plan adviser and hopefully get information.
 

lisa g

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Cathy,
I am at the age that if I wanted to access my 401k that I contributed to for 30 years I could do so with no penalty. However I just converted one of our annuities to a higher yielding annuity and locked that in for 10 years. The financial advisor had advised us that we could liquidate the annuity without penalty prior to 10 years for an impending terminal illness so I would think your plan would have some type of clause attached to it.
 

blitzc

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Thanks for that information. This is reassuring!
 
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