I'm retired. I have an IRA. I want to withdraw entire account. Will I have to pay any taxes?

Question

I'm retired. I have an IRA. I want to withdraw entire account. Will I have to pay any taxes?

Answer 1

If it's a traditional IRA, yes you'll owe income tax on the withdrawal.  If you are under age 59-1/2 you'll owe an additional 10 percent penalty.

If it's a Roth IRA, no taxes will be due

Answer 2

Oh h**l yes, and then some in other ways.

Answer 3

Traditional or Roth? How old are you?

Answer 4

When you put the money into the IRA, you got a tax deduction.

When you take the money out, you finally pay the taxes.

The amount depends on your total income for the year.

Answer 5

Any distribution from an IRA is taxable as ordinary income in the year of distribution.  In addition if you are not 59 1/2 at the time of distribution you are likely subject to a 10 percent penalty.  Taking the entire amount from an IRA can be very expensive depending on your other taxable income and the amount of the distribution.  You may wish to have some one give you specific information about the tax consequences before you do so.