Ask Experts Questions for FREE Help !
Ask
    srm1968's Avatar
    srm1968 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 29, 2006, 03:54 PM
    Ira withdrawl
    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's Avatar
    RichardBondMan Posts: 832, Reputation: 66
    Senior Member
    		  
    #2

    Nov 30, 2006, 12:36 PM
    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 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.
    DrJ's Avatar
    DrJ Posts: 1,328, Reputation: 339
    Ultra Member
    		  
    #3

    Nov 30, 2006, 01:38 PM
    Unless, of course, it's a Roth IRA... in which there is no tax consequences or penalties involved.
    walt17's Avatar
    walt17 Posts: 335, Reputation: 28
    Full Member
    		  
    #4

    Nov 30, 2006, 04:36 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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

401k withdrawal [ 3 Answers ]

Does anyone know if there is a time frame in which my previous employer has to deliver my 401k withdrawl to me once I have requested it from him? It seems to be dragging on way too long. What legal action can I take?

Early withdrawal penalty [ 1 Answers ]

I took a 401K withdrawl to pay for daughters college. I paid it back while employed. I changed jobs and I was issued a 1099-R as income from the unpaid balance of the original withdrawl. Question is: Can the 10% penalty be waived for early withdrawl from 401K or is relief only applicable with...

401k withdrawal [ 1 Answers ]

The Big Lots store I have been managing the past three years recently closed. I wish to withdrawl my 401k contributions and I was wondering if I will be charged a penalty since the company closed my store and offered no transfer.

401k withdrawal [ 4 Answers ]

I am recently divorced and have to withdraw from my 401K in order to make a down payment on a house. I am also in the military and will be deploying to Iraq shortly. Question: If I cash in the 401K when I am in a tax free status (Iraq), will I still be taxed the 20% or just pay the 10% penalty?

View more questions Search