I am6O and still working but withdrew some money out of my retirement, is this considered an early withdrawal and subject 10% tax?

[hoosiergirl007]

if I withdraw from my retirement at 60 but not retired is that subject to the additional 10% tax?

[MindyB]

No, the IRS allows for penalty-free retirement withdrawals starting at 59½; once you pass that age, you can access your IRA or 401(k) funds for any reason without the additional 10% tax. 

However, keep in mind that while the penalty is gone, the withdrawal is still considered taxable income. You will owe regular federal (and potentially state) income tax on the amount you took out, which will be added to your wages from your job.

[rjs · Accepted solution]

If you are 60 years old now, in March 2026, and you made the withdrawal in 2025, it's not clear whether it was an early withdrawal. To avoid the additional 10% tax you have to have been 59½ or older on the date that you took the money out of the retirement account.

If you made the withdrawal in 2025 you should have received a Form 1099-R for the withdrawal. If the distribution code in box 7 of the Form 1099-R is 1 it's an early withdrawal. If the code is 7 it's not an early withdrawal. If the code is 2 it's an early withdrawal but the administrator of the plan knows that you qualify for an exception to the additional tax.