Need $1,000 for an Emergency? Now It’s Easier to Tap Your IRA or 401(k)

WSJ Your Money Briefing

The Wall Street Journal

News, Business News

3.8 • 1.6K Ratings

🗓️ 19 July 2024

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

The IRS has made it easier for people to withdraw up to $1,000 annually from their retirement account in case of emergency. Wall Street Journal personal-finance reporter Ashlea Ebleing joins host J.R. Whalen to discuss the fine print, including what qualifies as an emergency, and the tax implications involved. Sign up for the WSJ's free Markets A.M. newsletter. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Claude by Anthropic is generative AI for everyone.
0:03.5	Claude 3.5 sonnet offers groundbreaking intelligence at a price point that works for heavy duty tasks.
0:09.5	Join thousands of enterprises using Anthropic to stay at the frontier of AI.
0:15.0	Learn more at Anthropic.com slash Claude.
0:18.0	Here's your money briefing for Friday, July 19th. I'm J. R. Whelan for the Wall Street Journal.
0:27.0	What if you needed cash in a pinch? You can make a withdrawal from your retirement account, but the penalty is often pretty steep.
0:37.0	Until now, the IRS is allowing people with IRA or 401k accounts to take out up to $1,000 a year for an emergency.
0:46.7	So there's a specific list, things like medical bills, auto repairs, funeral expenses,
0:52.4	but for someone living paycheck to pay check that could mean
0:54.8	groceries. It's a pretty broad definition.
0:57.8	We'll go over the details with Wall Street Journal Personal Finance reporter Ashley Eblin,
1:02.2	after the break.
1:04.0	Meet Claude, the AI Assistant by Anthropic.
1:15.7	Claude can help with any project from brainstorming your campaign to building software.
1:20.6	Just share the context and Claude brings expert level results to every task.
1:25.0	Join teams around the world already working with Claude.
1:28.0	Learn more in Entropic.com slash team.
1:43.2	The IRS just made it easier to take out a thousand dollars from your retirement account. Wall Street Journal Personal Finance reporter Ashley Ebling joins me.
1:47.3	Ashleya, which types of accounts are eligible for these withdrawals?
1:50.9	The new rule applies to regular retirement accounts, not Roth accounts.
1:55.0	Basically, it lets you take up to a thousand dollars out of a pre-tax individual retirement account or 401k, penalty free.
2:03.2	That's what's new, the fact that you don't have to pay a penalty
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from The Wall Street Journal, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of The Wall Street Journal and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.