With some exceptions,amounts withdrawn from a pension plan prior to the normal starting date are subject to a ten percent nondeductible penalty.

Question

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This statement is true. Generally, withdrawals from a pension plan made prior to the normal starting date (usually age 59 1/2) are subject to a 10% penalty tax in addition to income tax. There are some exceptions, such as for those who meet certain disability or financial hardship criteria.

With Some Exceptions,amounts Withdrawn from a Pension Plan Prior to the Normal