EARLY DISTRIBUTIONS OF IRA
은퇴를 위한 연금을 59 1/2 세 이전에 해약할 경우, 찾아 쓴 금액에 대하여 소득세 보고를 해야 하며, 동시에 10% 의 벌금을 내야 한다. 10% 의 벌금 부과에는 몇가지 예외 규정이 있다.
1. 처음으로 집을 사기 위하여 해약하여 쓴 경우.
2. 납세가가 일을 할 수 없게 된 경우.
3. 돈의 용도가 병원비 혹은 교육비로 쓰인 경우 등.
Do you have an IRA or an employer sponsored retirement plan such as: 401-K, 403-B, 457, DB, Profit Sharing Plan, or other qualified retirement plans? Did you purchase a non-qualified annuity to protect your retirement assets? If the answer is yes, then you should know what would happen tax-wise, if you take the money out early (taking premature distribution)? In most cases withdrawing funds early out of a retirement plan or an IRA before 59 ½, is called “an early distribution”.
• Early distributions will be reported to the IRS on form 1099-R and subsequently you will also report it on your personal income tax return.
• Early distributions are usually subject to ordinary income taxes on both Federal and State levels. You will pay taxes based on your tax bracket. Additionally, you also will be subject to the 10 percent tax penalty.
• If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions (the amount that you contributed also referred to as basis) is not subject to income taxes or penalties. Any amount over the basis will be subject to the above taxes and penalties.
• There are several exceptions to the additional 10 percent early distribution penalty. These exceptions only apply to the IRAs. No 10% penalty applies if you withdraw the retirement money early out of the IRA for a qualified purpose such as:
– When the money is used for the purchase of a first home. (limit of 10,000 and other restrictions apply)
– When you use the money for certain medical or educational expenses. (restrictions and limitations apply)
– Most of the exceptions apply to an IRA and not to the employer sponsored retirement plans: 401-K, 403-B, 457, Profit Sharing and the like. So you will need to rollover your retirement funds from the company’s sponsored retirement plan to your IRA and then take early distribution for the qualified purpose above.