I need to take money out of my IRA but because I'm younger than 59.5 it will have the 10% penalty on it. The withdrawal calculator asks how much you would like to receive in your account and then has areas where you can fill in the tax percentages for state and federal taxes and then accounts for those in the withdrawal. So, for example, if you want to receive $500 it will take $615 out of your IRA to account for the "income" taxes. But it does not account for the 10% early withdrawal penalty.
My question is 2 fold: when do you get charged the 10% early withdrawal penalty? and is that 10% based off of the $500 or the $615?
