Watch Out! Taking money out of your IRA has strings
Question: If I take money out of my IRA before I’m 59½, what happens? Answer: What you’re referring to is a premature IRA distribution. If you are under age 59½ and withdraw funds from your IRA, you’ll probably have to pay a 10 percent penalty tax on top of whatever income taxes you owe on the distribution. This can be a major drawback for IRA owners who need money and have few other assets to … Read More