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cyndi20307
New Member

Do I have to pay penalties from an IRA withdrawal in 2017 as I was laid off and 57 years of age?

 
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BMcCalpin
Level 13

Do I have to pay penalties from an IRA withdrawal in 2017 as I was laid off and 57 years of age?

Yes, the early distribution penalty applies here.

The rule is that if you took a distribution from a 401(k) plan at 55 or later when "separated from service", then you would be exempted from the 10% early distribution, but this exception does not apply to distributions from IRAs.

Please see https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

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BMcCalpin
Level 13

Do I have to pay penalties from an IRA withdrawal in 2017 as I was laid off and 57 years of age?

Yes, the early distribution penalty applies here.

The rule is that if you took a distribution from a 401(k) plan at 55 or later when "separated from service", then you would be exempted from the 10% early distribution, but this exception does not apply to distributions from IRAs.

Please see https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...

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