Early Distribution of Roth or Traditional IRAs
Our Internal Revenue Service doesn't want us to touch the money in our Roth IRAs or Traditional IRAs before we reach 59 1/2 years of age.
They have a 10% tax if you do take out your money before that age.
The IRS says "The 10% additional tax applies to the part of the distribution that you have to include in gross income.
It is in addition to any regular income tax, on that amount
"You can take a distribution and roll it over or transfer the amount to another IRA or qualified retirement plan and not be subject to this 10% additional tax.
Take a look at IRS Topic 413 for more specifics..
The are exceptions to the 10% additional tax for early distributions:
This list here comes right from the Internal Revenue Service:
Get more info below:Publication 590, for more information on these exceptions.
Other exceptions apply to distributions from other qualified employee retirement plans.
For more info about the IRA distributions, look at Publication 590
You have to report the 10% additional tax on Form 5329.
In that case, you only have to enter the 10% additional tax on the appropriate line of your Form 1040 (PDF).
Federal income tax withholding is required for distributions from IRAs unless you elect out of withholding on the distribution.
If you decide to elect out of withholding, you might have to make estimated tax payments.