rjs
Level 15
Level 15

Retirement tax questions

Depending on the reason that you are withdrawing money from your IRA, you might qualify for an exception to the additional 10% tax for an early withdrawal. See Exceptions to tax on early distributions on the IRS web site. Be sure to look in the IRA column in the IRS chart. There is no way to avoid the regular income tax on the withdrawal.


The income tax and the additional 10% tax are taxes, not fines. You are not doing anything illegal.