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New Member
posted Jun 4, 2019 11:53:51 AM

I have an IRA account with a small amount , less than $5K , if I cash it in will the amount be treated as income during that financial year ?.

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1 Best answer
Level 15
Jun 4, 2019 11:53:52 AM

Yes, it will be income for which you will receive a 1099R.  If you are taking it as an early withdrawal before you are 59 1/2 then you will also owe a 10% early withdrawal penalty.

1 Replies
Level 15
Jun 4, 2019 11:53:52 AM

Yes, it will be income for which you will receive a 1099R.  If you are taking it as an early withdrawal before you are 59 1/2 then you will also owe a 10% early withdrawal penalty.