What Are The Penalties For Early Distributions On An IRA?
Early distribution are amounts withdrawn from IRA or annuity before taxpayer reaches age 59 ½. The additional tax is 10% on that amount distributed and must be included in gross income. This tax is in addition to any regular income tax. However, certain exemptions to this penalty may apply. -Example math: Let’s say you want to […]
When Do You Have To Start Taking Money Out Of Your IRA?
Individuals have many options when it comes to taking money out of their IRAs. For this question specifically, we’re looking at the deadline to begin this process. We’ll talk about these distributions and your Required Minimum Distributions (RMDs). About IRA Distributions Taxpayers are required to start taking RMDs by April 1st of the calendar year […]