topic Re: what percentage of tax should I pay for an early IRA withdrawal? in Retirement tax questions

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

shehires — Wed, 04 Feb 2026 07:30:00 GMT

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

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

VolvoGirl — Thu, 24 Jul 2025 19:16:33 GMT

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.

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

VolvoGirl — Thu, 24 Jul 2025 17:07:09 GMT

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

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

NCperson — Thu, 24 Jul 2025 17:28:04 GMT

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-on-early-distributions

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

rjs — Thu, 24 Jul 2025 19:07:37 GMT

@VolvoGirl wrote:

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

@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.

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

VolvoGirl — Thu, 24 Jul 2025 19:15:24 GMT

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