Will my early withdrawal of a Traditional IRA also incur a Georgia state tax penalty?

lmoesker · ‎June 6, 2019

I am planning on taking an early withdrawal of some of my traditional IRA. I understand that I will have to pay a 10% federal tax penalty, in addition to claiming the amount as income. My question was if there was a Georgia state tax penalty (I live in GA) that I will have to pay as well. Again, I understand I will need to pay state income tax on the amount received.

Thank you!

DoninGA · ‎June 6, 2019

There is not a Georgia state tax penalty for an early withdrawal from a tax deferred retirement account. That is a federal penalty only reported as a tax liability on a federal tax return.

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Will my early withdrawal of a Traditional IRA also incur a Georgia state tax penalty?

Retirement tax questions