If i withdraw earlt from a SEP IRA how much would I lose in taxes other then 10%. I would withdraw 5500?

Question

it is employer contribution only and i live in New York state

Answer 1

The custodian of the account would be required to withhold 20% of your withdrawal for federal taxes, so if you withdraw $5500, you will only get a check for $4400.

Then, depending on your tax bracket, you will have to pay more in taxes when you file. If you are in the 15% bracket, you will owe 15% plus the 10% penalty, for a total of 25%, so you will owe an additional $275 in federal taxes over the $1100 you already paid. If you are in the 25% bracket, you will owe an additional $825.

If your state has an income tax, you will owe taxes, and possibly penalties to them, too.

Answer 2

You'll also pay income tax, at whatever your rate is. It will be taxed as ordinary income.