Premature distribution

Definition:

A distribution from an IRA before the owner reaches age 59-1/2. Generally, a 10% penalty tax is owed on such a distribution. Also known as an early distribution or an early withdrawal.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Premium raid

An attempt to acquire a large portion of a company's stock to gain control by offering stockholders a premium over the market value for their shares.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio