Question

the premature distrbution penalty tax under irc 72 generally applies in which of the following circumstances

the premature distrbution penalty tax under irc 72 generally applies in which of the following circumstances

Homework Answers

Answer #1
Most retirement plan distributions are subject to income tax and may be subject to an additional 10% tax.
Generally, the amounts an individual withdraws from an IRA or retirement plan before reaching age 59½ are called ”early” or ”premature” distributions. Individuals must pay an additional 10% early withdrawal tax unless an exception applies.
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