Z Cherry Blog

Early Withdrawl Penalty

October 28th, 2008

If you are going to take an early withdrawl from your IRA or other retirement plan, bear in mind that there is probably a penalty for doing so unless your situation falls under one of the exceptions.

If you are buying a first home, for example, you can withdraw money from your IRA without a penalty for up to a certain amount of dollars.

However, most people when wanting to withdraw money do not fall under these exceptions and will have to pay the IRS penalty as well as be taxed depending on whether the contribution money was before or after tax.

Entry Filed under: Business