topic I withdrew 95000 from my ira to pay off debt and expenses in my sole proprietor business, i have the documentation, do i have to pay the penalty? in Retirement tax questions

I withdrew 95000 from my ira to pay off debt and expenses in my sole proprietor business, i have the documentation, do i have to pay the penalty?

tribbies1962 — Sun, 02 Feb 2020 21:37:22 GMT

Re: I withdrew 95000 from my ira to pay off debt and expenses in my sole proprietor business, i h...

ColeenD3 — Sun, 02 Feb 2020 21:52:26 GMT

Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called ”early” or ”premature” distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies.

Please see this CHART for possible exceptions.

Re: I withdrew 95000 from my ira to pay off debt and expenses in my sole proprietor business, i have the documentation, do i have to pay the penalty?

dmertz — Mon, 03 Feb 2020 04:56:48 GMT

Using the money to pay of debt and expenses of your business is not an exception to the early-distribution penalty.