I used the money to retire debt in order to lower my monthly cash flow so I could pay my mortgage (big mistake) Anyway, I had to pay a 10% penalty plus taxes on the money I withdrew. I heard that this should not have been taxed . Is this trus and can I get my taxes back? Thanks. Mike

The reason for which you withdrew from IRA is not covered under exclusion for early withdrawal penalty. Your U.S. Tax Return: Traditional IRA and Roth IRA (http://taxipay.blogspot.com/2008/05/traditional-ira-and-roth-ira.html)