ira withdrawl

srm1968 · #1 Nov 29, 2006, 02:54 PM

what are the penalties for an early ira withdrawl? I have an emergency situation where I need a small amount of cash. The account is in another state that I plan to visit shortlly.

RichardBondMan · Nov 30, 2006, 11:36 AM

Quote:

Originally Posted by srm1968

what are the penalties for an early ira withdrawl? I have an emergency situation where I need a small amount of cash. The account is in another state that I plan to visit shortlly.

Best to ask the financial institution what is needed, but my best guess is a written request from you that includes your name, address, tel number, acct no, ssan number, and a stmt from you as to whether or not you want any taxes withheld from the proceeds. Understand there is a 10% IRS penalty and the the proceeds received by you are reportable as ordinary earned income on your next tax returns.

DrJ · Nov 30, 2006, 12:38 PM

Unless, of course, its a Roth IRA... in which there is no tax consequences or penalties involved.

walt17 · Nov 30, 2006, 03:36 PM

Quote:

Originally Posted by DrJizzle

Unless, of course, its a Roth IRA... in which there is no tax consequences or penalties involved.

That's true if withdrawing regular contributions. Any gain that has been made would be subject to both 10% penalty and tax unless it was a qualified distribution.



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