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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
Satisfied Customers: 1672
Experience:  Enrolled to Represent Taxpayers Before The IRS
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I have approximately $85,000 in an IRA, that was created ten

Customer Question

I have approximately $85,000 in an IRA, that was created ten years ago when I left an employer and I transfered my 401K. The 401-K funds transfered equated to about $50,000 when the IRA was opened. We've contributed no after tax dollars to the account.

My question is, my wife and I and want to know the tax ramifications of pulling out $50,000 from this IRA.
Submitted: 7 years ago.
Category: Tax
Expert:  Marvin,EA replied 7 years ago.

Hello and thanks you for using Just Answer. Before age 59 1/2: Distributions from an IRA are taxable as ordinary income and are also subject to a 10% penalty for early withdrawal.

 

Age 59 1/2 to 70: Distributions from an IRA are taxable as ordinary income. There is no early withdrawal penalty or minimum distribution requirement.

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