Question by  kimborino (17)

What are the penalties for cashing in an IRA early?

I want my money now but it depends on the penalty.


Answer by  sanesh (86)

You can take money out of Individual retirement account , before 59yrs age , but there is penalty of 10% on total amount. But for housing loan , studentstudy , it is exempt.


Answer by  MomOf4 (97)

Usually yes, there are penalties for cashing in your IRA early. What the penalties are and how much they may charge you depends on whom you have your IRA with.


Answer by  tamarawilhite (17883)

You will have to pay income taxes on the money, as well as a 10% penalty. If your income tax rate is 28%, you will have to pay 38% in federal income taxes on the money taken out. The cut off limit on when you can take money out is age 59 1/2.


Answer by  Roland27 (16334)

Each IRA is different. Some IRA's have penalties that if you cash out early that the tax level is so high that you basically lose most of the money. Some penalize against you take it out before a certain time.


Answer by  Vanasatchy (816)

One has to pay a penalty for cashing in an IRA when he or she is below 59 and a half. Once you are 59 and a half you can cash it out for medical expesive or if you are physically handicapped. This can be used for paying educational fees

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