Hello. I lost my job 1+ months ago and am now thinking of tapping into my IRA. Aside from the bank's penalty fee, what are the tax implications of doing this? I know I can get X amount out and if I return it (in full!) before 12/31 the IRS won't tax me. But what about if I withdraw the money (without the bank withholding)? How much should I set aside for taxes if I am not able to return the amount in full? Is this Federal and State or just Federal? Please, advise.
2007-01-23 09:35:43 · 3 answers · asked by zaxxon 3 in Business & Finance ➔ Taxes ➔ United States
First, I think it is 60 days that you have to put the money back, not until the end of the year.
Now, the IRS will tax the money you took out of the IRA plus charge a 10% penalty one the amount of the withdrawal.
2007-01-23 09:42:21 · answer #1 · answered by irongrama 6 · 1⤊ 0⤋
If it is a ROTH - 10% penalty - because you funded it with after tax dollars. The regular IRA withdrawal will be taxed at your rate plus a 10% penalty.
2007-01-23 09:41:55 · answer #2 · answered by justwondering 6 · 1⤊ 0⤋
I just withdrew my Roth IRA a few days ago and was told by the mutual fund company that the penalty would be 10% payable to the IRS.
2007-01-23 09:39:22 · answer #3 · answered by Anonymous 2 · 0⤊ 0⤋