What is the early distribution penalty for an IRA?
When you take a distribution from your IRA before you turn 59 ½, you’ll pay a 10% early withdrawal penalty on the taxable part of the distribution, unless you qualify for an exemption.
The total distribution is taxable from a Traditional IRA, if you received a tax deduction in the year you made the contribution. If your Roth IRA distribution includes earnings, then the earnings are considered taxable, but not your original contribution.
Once you enter the distribution information from your 1099-R form, we'll help you check for any exceptions to the penalty.