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What is a realistic percentage to lose when cashing in a trad. IRA?
If the gross amount withdrawn is added as income I believe I will have about 140,000 income from the year. Not sure how much of a hit I'll take percentage wise.
After looking at some of your answers, you can't take a loan out on an IRA, and I don't contribute to the IRA so I'm not gaining any shares at good prices. I'm just losing and I have other vehicles for retirement. I could use this money to pay off debt and not pay interest or penalties on other things. Does that make sense.
5 Answers
- 1 decade agoFavorite Answer
You will have a penalty of 10% plus the income tax on ordinary income. That could be as high as 28%.
- rtfmLv 71 decade ago
If you're under age 59-1/2, you'll lose whatever you have to pay for income tax (20 percent, maybe? Plus whatever your state tax is) and you will also pay a 10 percent penalty fee.
Cashing in an IRA should only be done as a very last possible resort. Can't you just take a loan against it, if you need money?
- bdancer222Lv 71 decade ago
You will have the 10% penalty for early withdrawal and about 30% withheld for taxes. So you will only get about 60% of your IRA balance.
Better to let the IRA ride. If you're really desperate, only take what you have to have.
- 1 decade ago
dont cash it in
you have to pay 10 percent fee
and then tax you will end up with
only 40- 60 percent left
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- pagodaboy2001Lv 51 decade ago
You are looking at between $80k-$90k after fees and taxes if you don't meet the age requirement...terrible time to cash out.
