Back to Budgeting and Taxes
Reply
Sunday, April 25, 2010 - 11:45 AM

Early IRA Withdrawals without the 10% Tax Penalty

If you withdraw funds from an IRA before 59½, you'll generally be subject to a 10% penalty from the IRS in addition to regular income tax. However, there are exceptions. This WSJ article describes Section 72t of the federal tax code under which the penalty doesn't apply if the withdrawals are made in a series of "substantially equal periodic payments" (SEPP).
1
KenBDGKenBDG5,132 posts since
Nov 29, 2009
Rep Points: 116,925
Reply