Does anybody know if you take money out of an IRA account how much you get penalized in your tax's?
Answer: It depends on your age and the reason for taking the money out, there is a penalty of 10% applied by IRS not usre if your state has a penalty as well some do.
The entity holding the IRA accoutn is required to withhold taxes and the 10% penalty this is in anticipation of filing your tax return just because they withheld the money doesn't mean all hte tax owing on it is paid, you need to file a tax return reporting the amount of distribution on form 5329.
If you are over 59 1/2 during the year you won't have to pay a penalty, there are other exceptions like death, disability, these are outlined on form 5329.
If you have a ROTH IRA there is no penalty for taking money out early!
With regular IRAs I think the penalty is 10% + normal income tax but there are exceptions - like you can take up to $10,000 out to help pay for a first home.
10% unless you meet one of the exceptions to the penalty.
The 10% is in addition to any taxes you owe on the money you take out.
Traditional IRA = 10% penalty (under 591/2) and report as income on 1040 in the year withdrawn.
Roth IRA = take back out your principal money (tax paid money) anytime for no penalty. The earned extra money is like the
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