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bunny019
New Member

If I withdraw money from my IRA to pay my taxes, will I have to pay penalty? I am younger than 59 1/2?

 
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Rachel_W
Expert Alumni

If I withdraw money from my IRA to pay my taxes, will I have to pay penalty? I am younger than 59 1/2?

Yes, if you are under age 59 1/2 and withdraw money from your IRA, you will be subject to the 10% early withdrawal penalty even though you are using the money to pay your taxes.

One exception to this is if the distribution is due to an IRS Levy on the IRA account.

You can check out this TurboTax FAQ to review available Exceptions to the Early Distribution Penalty for IRAs. 


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2 Replies
Rachel_W
Expert Alumni

If I withdraw money from my IRA to pay my taxes, will I have to pay penalty? I am younger than 59 1/2?

Yes, if you are under age 59 1/2 and withdraw money from your IRA, you will be subject to the 10% early withdrawal penalty even though you are using the money to pay your taxes.

One exception to this is if the distribution is due to an IRS Levy on the IRA account.

You can check out this TurboTax FAQ to review available Exceptions to the Early Distribution Penalty for IRAs. 


If I withdraw money from my IRA to pay my taxes, will I have to pay penalty? I am younger than 59 1/2?

An IRS Levy is a levy on the retirement plan itself,  not on you personally.
It does not apply in your situation.
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