Using Your Retirement Account as an Emergency ATM Just Got Easier

The Internal Revenue Service has now made it easier to take a limited amount of money out of a traditional retirement account penalty-free. While previously you could tap your savings without penalty in more limited ways, and often with more paperwork, you can now take out up to $1,000 of your funds for any self-defined emergency. The change comes after the IRS spelled out what counts as an emergency personal or family expense under a 2022 retirement law that went into effect this year.