Traditional IRA account. if i withdraw money out of that account do i have pay somehing on next years tax filing ?

[mendezmayra323@i]

i am in need of cash assistance and need to withdraw money from this account its not alot but i want to know if i will be fined for doind so at the time i file my taxes next year . 

[xmasbaby0]

If you are younger than 59 1/2 there is a 10%  early withdrawal penalty.  And there will always be tax on the distribution no matter how old you are.   You will get a 1099R at tax time and will need to enter the 1099R on your tax return.

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

[DoninGA]

A withdrawal from a Traditional IRA is reported on your tax return as ordinary income and taxed at your current tax rate based on your filing status.

If you are under the age of 59 1/2 at the time of the withdrawal you will be assessed a 10% early withdrawal penalty on the amount withdrawn and reported your tax return as a tax liability.

You will receive a Form 1099-R from the IRA plan administrator in January 2025 for a withdrawal made in 2024.  The tax data from the Form 1099-R is entered on your 2024 federal tax return.

[rjs]

Depending on the reason that you are withdrawing money from your IRA, you might qualify for an exception to the additional 10% tax for an early withdrawal. See Exceptions to tax on early distributions on the IRS web site. Be sure to look in the IRA column in the IRS chart. There is no way to avoid the regular income tax on the withdrawal.

The income tax and the additional 10% tax are taxes, not fines. You are not doing anything illegal.

[Opus 17]

To avoid as many tax problems as possible, you should ask for taxes to be withheld by the plan for you by the trustee, rather than taking the full amount and then paying the tax later.  Paying later can result in under-payment penalties even if you pay in full when you file your return.

Depending on your other income, it is likely that you will owe 22% or 32% tax (12% bracket plus 10% penalty, or 22% bracket plus 10% penalty).

It's not really a fine, it's just that retirement accounts are supposed to be set aside for retirement, so there is an extra penalty on early withdrawals to encourage people to leave the account alone.  

There are a handful of exceptions to the 10% penalty (look at the web page linked by @rjs ) but you will still owe regular income tax even if you are exempt from the penalty.