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Old 07-31-2007, 08:18 AM
Location: Tennessee/Michigan
28,210 posts, read 47,618,622 times
Reputation: 19723


Most IRA owners have had it drummed into their heads that serious consequences result if any money is withdrawn from this account before they turn 59˝. (These can include a 10 percent penalty, as well as interest.)

However, if you know the rules, there are a half-dozen or so ways to access your IRA “early” and at least avoid the penalty. (Money withdrawn from a “traditional” IRA, that consists only of pre-tax contributions, will always be subject to income tax.)

Exceptions to the 10 percent “early withdrawal penalty” can be found in Section 72(t) of the Internal Revenue Code. They include becoming disabled, buying a first-time home, paying college expenses (for yourself, your spouse, your child, or grandchild), and purchasing health insurance after you’ve been unemployed for a period.

FOXNews.com - Tapping Your IRA Early Can Be Tricky -- and Costly - Retirement | Planning | Calculator
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