Hi, I've been self-employed now for several years with my online businesses. But I sold them off in late 2011 and have been living off my savings ever since. I do have little bits of sales
come in here and there, but not enough to pay all my expenses...so I continue to drain my savings account.
Recently, I'm starting to do freelance copywriting for some income
. It is starting to help me not take out so much of my savings. But my savings account is getting pretty depleted.
I have a SEP IRA with Vanguard with $11k in it, and I'm thinking of taking an early withdrawal from it to help me financially...but I'm not crazy about the 10% penalty. I'm 38 years old currently.
Since I'm self-employed, pay my own expenses each month including health insurance (over $300 a month now), etc. is there any way I can avoid the 10% penalty?
And lastly, will that amount be taxed as income in 2013 if I do withdraw it?