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    iraquestion's Avatar
    iraquestion Posts: 1, Reputation: 1
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    #1

    Apr 8, 2009, 02:30 PM
    IRA withdrawl and taxes due
    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's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    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.
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