Active Duty Military: No Penalty For Early Withdrawal
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Members of the military called to active duty any time since Sept. 11, 2001, and through Dec. 31, 2007, who serve for six months or more can take out money from IRAs, 401(k)s or other personal retirement plans without incurring the 10 percent early-withdrawal penalty that's usual in such cases. And if the money is redeposited into the plan within two years after active duty ends, it won't be subject to taxes.
Members of the military also may be able to defer paying taxes they owe if they can prove that military service hindered their ability to pay by lowering their income or otherwise adversely affecting their circumstances.
