what is the penalty for cashing in an IRA before 59.5 yrs ?

Answer 1

As others have said, you pay a 10% penalty and include the withdraw in your income. Their are exceptions the this rule. See IRS Publication 560 for more information. The main exceptions involve disability, court orders, or substantially equal periodic payments for the life of the individual.

Answer 2

If you have taken out funds from your IRA or pension plan and you are under 59 1/2, you have 60 days to roll the funds into a new IRA. If some unforeseeable circumstance has prevented you from doing that, the IRS will give a ruling permitting you to have more time, but you have to roll it over as soon as possible and then ask for the dispensation.

Answer 3

10% tax penalty. The line item is located on Page 2 of your 1040.

Answer 4

On top of being taxed at your marginal rate for the distribution, you are also subject to a 10% tax on the distribution as an early withdrawal penalty.

Answer 5

You have to pay income tax on anything you withdraw. A 10% penalty is owed on the amount withdrawn, as well.

Answer 6

You will owe regular tax based on your tax bracket % plus a 10% penalty of the amount withdrawn.

Answer 7

You'll owe everything you'd owe anyway as far as taxes, plus a 10% penalty on the amount you withdraw.

Answer 8

Unless they changed the rules, 10% of the amount you withdraw plus any premium interest back to the deposit date.

Note: I was in consumer lending, not in branch.

Answer 9

10% of the amount you take plus regular income taxes plus state income taxes if applicable.