IRA Early Withdrawal Rules
Withdrawing an IRA fund early generally requires paying penalties, as well as taxes on the money in the account and any growth that has occurred. Once a person has reaches 59 and a half years of age, there are no penalties for withdrawing IRA funds. Find out about hardships that might allow a person to withdraw an IRA early with information from an investment portfolio manager in this free video on retirement funds.
Promoted By Zergnet
So what are the early withdrawal rules for an IRA? The rules are basically that you've got a tax deferred account. You're growing your money with out any taxes being paid. And if it's a regular IRA, what you'll need to do is you'll be subject to a ten percent penalty, and you'll also have to pay taxes on the money that, not only that you put in to the account, but also any growth, because all of that is grown tax deferred. If it's a ROTH IRA, you've put in money that was after tax money, so you won't have to worry about that, but you will have to pay tax against the gain, and the ten percent penalty. Now, there are some stipulations. If you're over the age of fifty-nine years and six months, then you're free to take money with out penalty. Taxes, either way, will be levied against any gains. But there are also stipulations for a first time, and some other arrangements, hardships, disability, things like that, you'll be able to pull your money out early. But all of those things should run past your accountant, your tax person, just to make sure you understand all your liability and what you may end up with in the end, and what your tax liability would be.