IRA Tax Penalty
If you are wondering if there is an IRA tax penalty for withdrawing money from an IRA early, the answer is yes.
It is best if you do not touch your money and let it accumulate as long as you can. If you decide to withdraw any money before the age of 59 and a half, the money will be subject to an early withdrawal penalty of 10% of the amount of distribution. By withdrawing your money early, you are losing tax free compounding which can cost you lots of money by the time you retire.
The … Read more at 2009 Tax.