How does taking money from my retirement affect my taxes?

[abrilsantoyo]

I am considering taking out money from my retirement early, but I am unsure of how this will affect or penalize me at the end of the year when I go to file my taxes.

[xmasbaby0]

If you are younger than 59 1/2 there is a 10% early withdrawal penalty for taking the money out.  And there will always be ordinary income tax --at whatever tax bracket you are in.   In January you get a 1099R for the distribution from the retirement account and must enter it on your tax return.   Usually when you take money out of a retirement account you can have some tax withheld -- just like you have withheld from your paychecks.   If you do that, you will be entering the amount that was withheld when you enter the 1099R.