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Q.What is the tax owed on an early withdrawal from a Roth IRA?
A.First, you should almost never withdraw funds form an account that is growing tax free. That said, withdrawals from a Roth IRA or Roth 401(k) can always be taken out tax-free at any time. However, you will owe the 10% penalty for early withdrawal, if the money is being withdrawn prior to age 59 ½ and does not fall under one of the exemptions for such things a death, disability, $10,000 to purchase a home.
IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this web site is not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed on a taxpayer under the U.S. Internal Revenue Service.
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