Distributions from qualified retirement plans and IRAs for emergency personal or family expenses or for survivors of domestic abuse, although taxable, are exempt from the 10% early distribution penalty for those under age 59½, effective January 1, 2024. These new penalty exceptions are defined in Q&As from the IRS. Emergency personal expense distributions are limited to one distribution per year up to $1,000. If an employee requests such distribution (e.g., to pay for car repairs) from your company’s retirement plan and your plan allows it (this is optional), you can rely on the employee’s written certification that satisfies the conditions for an emergency personal expense distribution. Distributions to domestic abuse victims are limited to the lesser of $10,000 or 50% of the retirement plan account balance. #IdeaoftheDay