A withdrawal from a Traditional IRA is reported on your tax return as ordinary income and taxed at your current tax rate based on your filing status.
If you are under the age of 59 1/2 at the time of the withdrawal you will be assessed a 10% early withdrawal penalty on the amount withdrawn and reported your tax return as a tax liability.
You will receive a Form 1099-R from the IRA plan administrator in January 2025 for a withdrawal made in 2024. The tax data from the Form 1099-R is entered on your 2024 federal tax return.
