2007-11-09 23:41:55 · 5 answers · asked by James S 2 in Business & Finance ➔ Taxes ➔ United States
No, these penalties are not deductible. You will pay the ten percent penalty on any early withdrawals, and will also report the early withdrawal as taxable income for the year in which it was withdrawn.
Accordingly, if you are in a 25% income tax bracket, your net tax loss on this early withdrawal will be 35% of what you withdraw.
2007-11-10 00:36:20 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
The interest penalty for early withdrawal of after-tax savings is tax deductible as an adjustment to income.
But the penalty for early withdrawal of your IRA is not tax deductible.
2007-11-10 00:12:29 · answer #2 · answered by ninasgramma 7 · 1⤊ 0⤋
No, the 10% penalty for early withdrawals from your IRA are not tax deductible. Also, any amount you withdrawal will be included as gross income.
2007-11-09 23:56:07 · answer #3 · answered by David B 4 · 3⤊ 0⤋
Yea y not....? If ur a relative of President Bush..!!!!
2007-11-09 23:49:16 · answer #4 · answered by Mozy 2 · 0⤊ 5⤋
no
2007-11-09 23:50:55 · answer #5 · answered by Gabby O 1 · 4⤊ 0⤋