We keep you up-to-date on the latest tax changes and news in the industry.
Article Highlights:
Separation from Service - Distributions from a qualified retirement plan after separation from service in or after the year the taxpayer reaches age 55 are penalty-free. (A special rule applies for certain public safety employees.) This exception does not apply to distributions from IRAs or SEPs.
Disability - If a taxpayer becomes disabled before reaching age 59 1/2, any amounts withdrawn because of the disability are not subject to the 10% additional tax. A taxpayer is considered disabled if the taxpayer can furnish proof that he/she cannot perform any substantial gainful activity because of the physical or mental condition. A physician must determine either that the taxpayer’s condition is expected to result in death, or is expected to be of a long, continued and indefinite duration.
Special Financial Need Withdrawal Options
Although it is never a good idea to tap retirement funds before actually retiring, the tax code does provide exceptions to the early distribution penalty where there are special financial needs. But keep in mind the tax on the distributions as discussed at the beginning of this article still applies, so make every attempt to look for other sources of funds whenever possible.
Unreimbursed Medical Expenses Exception - Amounts withdrawn to pay unreimbursed medical expenses during the year that would be deductible on Schedule A and that exceed the percentage of AGI floor are exempt from penalty. This is true even if the taxpayer does not itemize and instead uses the standard deduction.
Qualified Reservist Distributions – These are amounts withdrawn from an IRA or attributable to elective deferrals under a 401(k) plan, 403(b) annuity, or certain similar arrangements made to individuals who (because they are members of a reserve component) are ordered or called to active duty for a period of more than 179 days or for an indefinite period, and the distribution was made during the period beginning on the date of the order or call to duty and ending at the close of the active duty period. These distributions can be paid back at any time during the two-year period beginning on the day after the end of the active duty period.
Medical Insurance Exception – These are amounts withdrawn from an IRA to pay for medical insurance for the taxpayer, spouse, and dependents. However, to qualify for this penalty exception the taxpayer must have lost his/her job, received unemployment compensation for 12 consecutive weeks, and the withdrawals must be made no later than 60 days after being reemployed.
Higher Education Expense Exception - Withdrawals made from an IRA during the year for qualified higher education expenses not otherwise paid for by other means for the taxpayer, spouse or children or grandchildren. However, for this exception to apply, the withdrawal must be in the same year as the education expense was paid.
First-Time Homebuyer Exception – Withdrawals made from an IRA up to a maximum of $10,000 for the purchase of a home. For a married couple, the $10,000 limit applies separately to each spouse. To qualify for this exception, all of the following requirements must be met:
Sign up for our newsletter.
Your CFO, Reimagined as a Financial Doctor
Diagnosing root causes, prescribing solutions, and guiding your property business toward long-term wealth.
Raquel is a passionate business owner. Now, she is returning to her grassroots with a twist - guiding clients with her expertise as a CPA, she can advise your company as your trusted CFO and Advisor.
✅ CPA with Real-World Experience – I help property managers stay profitable, tax-efficient, and cash flow positive.
✅ Tax Strategist – Former advisor at California’s revenue agency.
✅ Trusted by 4,000+ Businesses – Experience across CA, FL, TX, NV, and beyond.
✅ Real Estate Investor – I understand the financial realities of property management.
✅ Entrepreneur – I’ve built businesses and know the challenges you face.
We diagnose financial inefficiencies, treat problems like poor cash flow or rising costs, and guide you to long-term financial health. That includes cleaning up your books, forecasting cash flow, optimizing operations, and helping you grow your portfolio with confidence — just like a doctor builds a custom care plan for a patient.
Bookkeepers record transactions. CPAs file your taxes. We connect the dots — helping you understand your numbers, strategically improve them, and make smarter decisions throughout the year. We work alongside your existing team to drive performance, not just compliance.
If you're unsure where your cash is going, struggling with rising costs, planning to scale, or just tired of reacting instead of planning — now is the right time. We help you get ahead of problems, not just clean up after them.
Clients typically see improved cash flow, cleaner books, higher NOI, better financial reporting, and a lot less stress at tax time. More importantly, you gain clarity, confidence, and control over your business — and a partner who helps you grow it.
Painless, transparent pricing.
Let us take away your stress and give you back your time. Choose your perfect package today.
Dedicated finance expert
Bookkeeping with accrual basis
Includes P&L, balance sheet, and cash flow statements
Includes everything in Base, PLUS
Industry KPIs and financial ratios
Monthly virtual 1-hr meetings
Monthly rolling budget forecasts
Includes everything in Base, CORE
Budget vs. actuals variance analysis and review
Payroll and HR Platform