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.

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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.

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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 you want any taxes withheld from the proceeds. Understand there is a 10% IRS penalty and the proceeds received by you are reportable as ordinary earned income on your next tax returns.

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

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Originally Posted by DrJizzle

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

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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.