Can I withdraw my IRA early?
In the case of Traditional IRAs, you deposit contributions without taxes, therefore, if you cash them out before the age of 59 and a half, you will pay income taxes for the whole amount, plus a 10% penalty.
In the case of Roth IRAs, instead, you have already payed income taxes, so you will be able to withdraw the amount you have invested, tax-free. However, if you also want the earnings, you need to wait 5 years from the first contribution you made. Otherwise the contributions will be taxed as income.
Also in this case, though, if you withdraw before the age of 59 and a half you will pay a 10% penalty.
There are, however, conditions that allow you to freely withdraw your IRAs, which are for example medical expenses, educational costs, first home purchases etc. You can check with your accountant if your needs are listed among these exceptions.
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