She Turned 59½ in August and Took a $20,000 IRA Withdrawal in March. Five Months Cost Her $2,000
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The post She Turned 59½ in August and Took a $20,000 IRA Withdrawal in March. Five Months Cost Her $2,000 appeared first on 24/7 Wall St..
A $20,000 withdrawal taken in March by an account owner who did not turn 59½ until August counts as an early withdrawal. Because the distribution happened before the birthday threshold, the additional 10% tax applies to the full amount, totaling $2,000. The penalty is charged on top of regular income tax, which applies to the withdrawal regardless of timing.
A $20,000 withdrawal taken in March by an account owner who did not turn 59½ until August counts as an early withdrawal. Because the distribution happened before the birthday threshold, the additional 10% tax applies to the full amount, totaling $2,000. The penalty is charged on top of regular income tax, which applies to the withdrawal regardless of timing.
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