Will I be charged a fee for withdrawing funds from my IRA account, which I opened 3 months ago? Also, am cancelling accounts coz I'm losing out after accnt fee deduction.

[TomK2023]

Probably.

Potential fees and/or penalties for withdrawing funds from your IRA after only 3 months depends on the type of IRA fund you have.

For a Traditional or Roth IRA: If you are under the ag of 59 1/2, you are generally charged a 10% early withdrawal penalty in addition on the taxable amount of early distributions unless you qualify for an exception (see below).  

There may also be a "withdrawal penalty" from the financial institution depending on your account agreement.

There is a 5-tax-year requirement for Roth IRAs which means any earnings withdrawn will be a non-qualified distribution.  

For a Roth IRA, you can withdraw your initial contributions without any tax nor penalties.  However, if you are under 59 1/2,  then you will pay tax and a 10% penalty on any earnings (gains) distributed.

If you are under 59 1/2, the 10% tax penalty may be waived if the withdrawal qualifies under an exception, such as:

• Qualified first-time homebuyer distributions (up to $10,000)
• Qualified higher-education expenses
• Unreimbursed medical expenses that are more than 7.5% of your adjusted gross income
• Death or total and permanent disability

Enter the information from your 1099-B form (Proceeds From Broker and Barter Exchange Transactions), and the software will compute any tax and penalties that you may owe.

[Opus 17]

So, there are really 2 questions here.

1. Will the IRA custodian charge a fee to close the account?  We can't tell you that, it depends on the plan rules.  Note that if you have an IRA and don't like your current plan, bank or broker because their fees are too high, you can do a rollover to move the funds to an IRA at a different bank or broker with better terms.  Rollovers are tax-free and keep your money invested for retirement.

2. Will you pay taxes if you withdraw money from your IRA?  Yes.  How much depends on what kind of IRA and how old you are.  If this is a traditional (pre-tax or tax-deductible IRA) then you will pay regular income tax on the entire amount withdrawn.  You will also pay a 10% penalty if you are under age 59-1/2.

Again, if you don't like the terms of this particular bank or broker, you can move your funds to another bank or broker by rollover.