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View Full Version : IRA withdrawal and taxes due


iraquestion
Apr 8, 2009, 02:30 PM
I am bleeding money from my little IRA along with having to pay $60/quarter just to have the company manage it. I now have less than I originally invested 9 years ago. I am considering withdrawing all of it and fixing the foundation of my house. What would be the tax hit if I did this?

ebaines
Apr 8, 2009, 02:50 PM
You would have to pay regular income tax on the portion of the withdrawal that represents pre-tax contributions and earnings. If you live in a state/locality that has income tax, you have to pay that tax as well. And if you are under 59-1/2 years of age, you would also have to pay a 10% early withdrawal penalty.