2006-09-02 19:30:56 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes, if it is as regular IRA. If it is a Roth IRA, you would just pay the penalty.
2006-09-02 19:39:31 · answer #1 · answered by lcmcpa 7 · 0⤊ 0⤋
If it is a regular IRA you would pay taxes and penalties if you withdraw principal or gains before you are59 1/2. if it is a Roth there are no taxes and you can withdraw any principal you put in without penalty as long as if has been in 5 years or longer. You will be penalized if you withdraw gains before 59 1/2 or if you withdraw principal that has been in less than 5 years.
2006-09-02 21:05:52 · answer #2 · answered by ken 3 · 0⤊ 0⤋
Both Roth and regular IRAs have a tax plus 10% penalty. However, there are exceptions for certain things, such as certain medical expenses.
More info:
http://www.taxprophet.com/faq/990523.htm
2006-09-02 19:39:27 · answer #3 · answered by Anonymous · 0⤊ 0⤋
tonalc1 is closest to right. But in addition to medical expenses there ARE other expenses that allow you to avoid the penalty: such as education expenses for you, your spouse or your dependants. Also, and I'm not sure of this, but I think a legal judgement against you in most cases allows avoidance of the penalty as well.
You still owe ordinary income tax on these distributions, however, unless its a Roth, in which case you owe only capital gains taxes on the appreciation of the investments (so long as you held them 1 year or longer).
2006-09-02 23:05:34 · answer #4 · answered by midwestbruin 3 · 0⤊ 0⤋
depends on what type of IRA you have.
2006-09-02 19:36:33 · answer #5 · answered by disco_stud61 2 · 0⤊ 0⤋
not if it is a roth ira.
2006-09-05 21:35:56 · answer #6 · answered by arejokerswild 6 · 0⤊ 0⤋
Yes, sad but true.
2006-09-02 19:33:32 · answer #7 · answered by Anonymous · 0⤊ 0⤋