Is it possible to cash-out my standard IRA to pay my taxes?

August 18, 2007

Posted by binayStrat

( 0 ratings )

Not easily. A withdrawal from a retirement plan/IRA will likely have an income tax associated with it.

There is a list of exceptions from the 10% penalty for those under 59.5 years of age:
- School
- 1st time home buyer exemption
- Medical expenses.
- Payment of medical insurance premiums while unemployed.
- Total and permanent disability.
- Distribution of account assets to a beneficiary after your death

I'd also take a look at rule 72(t) distribution as an option.

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