9 Reasons Many Americans May Never Be Able to Retire

6) They’re Withdrawing too Much from Their IRA

Many Americans make the mistake of withdrawing too much money from their IRA each year. Many people want to use their hard-earned money right away, and they may feel that it’s worth losing a bit of their retirement funds. When you withdraw early, you’ll naturally have less to spend when you retire. Plus, on top of that, you’ll also be hit with early withdraw fees. If you withdraw from your Traditional IRA before you’re 59½, you’ll owe income tax on the money you withdrew. You’ll also have to pay a 10 percent early distribution penalty tax. Unless it’s an emergency, it’s best to keep your money in your IRA until you’re at least 59½. That way, you won’t have to deal with the high fees that can come from the early distribution penalty tax.