what percentage of tax should I pay for an early IRA withdrawal?

[shehires]

I am 58 years old and need to make a withdrawal from my traditional IRA. What percentage of tax should I pay?

[VolvoGirl]

It will add to your total income and be taxed at  your regular rate.  And there is a 10% early withdrawal penalty for under 65 update it's only 59 1/2.   If it is a large amount it may push you into a higher tax bracket.  You can lose like 50% of it for federal and state taxes and the extra 10% early withdrawal penalty.  

[VolvoGirl]

Why do you need to take it out early?  See IRS pub 590B page 24 for a list of Exceptions to the Early Withdrawal Penalty
https://www.irs.gov/pub/irs-pdf/p590b.pdf

[NCperson]

There is a 10% penalty on ALL withdrawals, unless an exception applies.   

There is still the normal income tax to contend with. 

Figure the tax is the withdrawl times (your tax bracket+10%).  

see this list for possible exceptions. 

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

[rjs]

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@VolvoGirl wrote:

And there is a 10% early withdrawal penalty for under 65. 

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@shehires  @VolvoGirl 

The early withdrawal penalty for an IRA applies to withdrawals before age 59½, not 65. The difference doesn't matter to @shehires, who is only 58. I'm just setting the record straight for other people who might read this thread.

[VolvoGirl]

Thanks!  I knew that.  Don't know why I wrote 65.  Maybe he can wait a year to take the withdrawal.