Penalties for cashing in retirment early | 401k Questions

Question

Asked 2/16/2008

Penalties for cashing in retirment early

Are you hit twice with penalties from the IRS when you cash in your retirement before age 59?

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Answers

Answer 1/2 - Submitted 2/17/2008

I think you get hit with a 10% early withdrawal and then the money you get out is treated as income which is taxable.

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Answer 2/2 - Submitted 2/17/2008

Regular IRA you pay taxes on withdrawal. If its a Roth, you have already paid taxes, so that would not apply. 10% penalty should still apply though.

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