what is the penalty tax for early retirement withdrawl?

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what is the penalty tax for early retirement withdrawl?

We just received a payout on our stocks that are considered retirement funds

2007-08-14 11:57:29 · 3 answers · asked by frenchmom04 1 in Business & Finance ➔ Personal Finance

3 answers

If you put the FULL amount, including any withholding, in an IRA or qualified retirement plan within 60 days, there is no early withdraw penalty. If you don't you pay a 10% penalty and must add the amount to the withdraw to your income for tax purposes.

2007-08-14 13:24:03 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋

The bottom line is you'll pay about 40% in taxes. I would talk to a CPA before you touch it. Better to be safe now than sorry later.

2007-08-14 18:09:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋

10% is the penalty for early withdraw.

2007-08-14 12:11:07 · answer #3 · answered by William H 5 · 0⤊ 0⤋