Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<< If I make early withdrawls from my i.r.a. before retirement age I realize I must pay the 10 percent penalty plus tax but would i then be charged with an aditional income tax on the amount taken out? how many taxes would be due on this early withdrawl? >>

You need to do some basic reading about how IRAs work. I suggest the excellent IRA section of this board's FAQ. Among other things, you will find there that distributions from traditional IRAs are ordinary income, except for the return of previously-taxed contributions, and that there is a way to avoid the 10% penalty if you retire early.

Phil Marti
Tax Preparer
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement