Yes. The tax applies reguardless of what you do with the money.
If you are under age 59 1/2 then there could be an additional 10% early distribution penalty that might be waived for the first $10,000 if the money is used to purchase a first home and all of the other conditions are met.
This assumes you are asking about a Traditional IRA and not a Roth. For a Roth, you can always withdrew your own prion contribution tax and penalty free. The tax and penalty applies to any earnings that are withdrawn.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
