Are there penalties for early withdrawal from my AIG Retirement account?

AIG Retirement accounts, like many retirement plans, typically impose penalties for early withdrawals made before reaching a certain age. Generally, these penalties are aligned with federal regulations, which state that if you withdraw funds from a retirement account before the age of fifty-nine and a half, you may face an additional tax of ten percent on the amount withdrawn, in addition to any regular income tax that may apply. However, there are certain circumstances under which the penalty may be waived. Exceptions can include instances such as disability, certain medical expenses, or if you use the funds for a first-time home purchase, among others. It is essential to review the specific terms and conditions established by AIG Retirement, as they may provide additional details or applicable scenarios regarding early withdrawals and potential penalties. To understand your options better, it might be helpful to visit the AIG Retirement website where you can find more information and resources. Always consider consulting with a financial advisor to discuss your personal situation before making any decisions about withdrawals.