IRA question

[Dr. Evil]

What would the tax implications be if I were to cash out an IRA worth $100,000.00? 10% penalty plus what percentage in income tax??

Thanks

[Playa]

Depends on what your other income is. But my guess is that the IRA funds would bump you up a tax bracket or two.

[Arrowflinger84]

Yes I believe penalty plus taxed

[Shiner]

Dang. I think that would be a tough pill to swallow. Good luck though

[afishinman14]

Only a 10% penalty if you are younger than 59 1/2 years old. Income tax will be based on tax bracket. You just include it when you file taxes. If it's a Roth IRA you only pay taxes on the amount that is more than what you put in originally (how much interest you have accrued) I could be wrong. But I believe it's correct.