Kaylon Burney is 80 years old and has an IRA with a fair market value of $325,000. What penalty would she incur if she decided to take an early withdrawal of $25,000 to take a cruise around the world?

Question

Vocaloid · Answer

@sillybilly123 sorry to bother but whenever you get a chance :S

Angle · Answer

The early withdrawal penalty only affects people under the age of 59.5 as stated by this government source: https://www.irs.gov/newsroom/what-if-i-withdraw-money-from-my-ira Therefore, there should be NO early withdrawal penalty if Kaylon is 80 years old. There might, however, be transaction fees or tax income to consider.