Editor’s note: This article is part 10 of a series on how to retire early and the FIRE (Financial Independence, Retire Early) movement. Part one is How to Retire Early in Seven Steps. To see all early retirement articles, jump to the end.
The road to early retirement is filled with challenges, and for many, the final boss in this quest is the IRS. Break its rules, and you’ll face penalties, particularly if you tap into retirement accounts before age 59½. While taxes are unavoidable, the IRS adds a hefty 10% penalty if you withdraw early.
