Question by  gsensel (19)

What are the penalties for a withdrawal from an SEP IRA?

It's become necessary for us to make a withdrawal from our IRA, and I need to know the tax implications of doing so.


Answer by  Dave21 (21)

The penalty is 10% of the total. You will also have to pay income tax on the full amount on top of this penalty.


Answer by  cgroverla (516)

If you are under age 59. 5 or do not meet an exception, you will be assessed a 10% penalty on your distribution amount, in addition to paying income tax on the distribution. Exceptions include death, disability, large medical expenses, qualified education expenses, or the purchase of a first home.


Answer by  Nate74 (6)

You will be assesed a ten percent penalty for a withdrawal. You will also be charged ten percent for taxes. So taotal you are looking at twenty percent deduction for whatever you want to withdrawal.


Answer by  Kevin45 (17)

The penalty for an early withdrawl, assuming you do not meet the IRS exceptions, is 10%. Income tax will also need to be paid on the amount withdrawn.

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