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lkrajesky
New Member

On the money I withdrew from my IRA in june I was charged 25% in taxes and then authorized prudential to take the extra 10% cause I am under the age of 59 so why do I owe

why am I being told I have to pay another additional 10%
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1 Reply
taxes9446
New Member

On the money I withdrew from my IRA in june I was charged 25% in taxes and then authorized prudential to take the extra 10% cause I am under the age of 59 so why do I owe

If you withdrew from your IRA prior to age 59 and 1/2 (6 months) there is a 10% penalty.  Appears that you instructed Prudential to withhold federal taxes of 25% (assuming federal or was a portion  state).    You should have a tax form from Prudential detailing your withdrawal and subsequent payment of taxes which should be entered on your return.  Unfortunately the 10% penalty is not a pre-payment of taxes - it is a simple penalty.

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