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Does early withdraw from my retirement account to start a business count toward lowering my tax bill?

 
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DavidD66
Expert Alumni

Does early withdraw from my retirement account to start a business count toward lowering my tax bill?

No.  Taking an early withdrawal from your retirement account will increase your tax bill.  In addition to income tax (unless it was a ROTH account) on the amount of the withdrawal, you will have to pay a 10% excise tax (penalty) on the amount of the withdrawal/distribution.  There is no exception for starting a business.  

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