Sentences with phrase «withdrawal penalty tax»

If you receive a TSP distribution before you reach age 59 1/2, in addition to the regular income tax, you may have to pay an early withdrawal penalty tax equal to 10 % of any taxable portion of the distribution not transferred or rolled over.

Usually, you must be 59 1/2 or older in order to avoid paying a 10 % early withdrawal penalty tax on your earnings.

If you receive a non-qualified distribution of earnings from an IRA and don't meet any of the tests described above, you must pay two taxes: the regular income tax plus an additional 10 % early withdrawal penalty tax.

Other exceptions to the withdrawal penalty tax may also apply.

A 72 (t) payment allows you to take money out of an IRA before age 59 1/2 and avoid the 10 % early withdrawal penalty tax.

If you transfer all or any portion of the payment (s) to an IRA or other eligible retirement plan, the amount transferred is not taxable income when it is transferred (it becomes taxable income when it is disbursed from the plan to which it was transferred) and, consequently, is not subject to early withdrawal penalty tax.

In addition, if you retire before the year in which you reach age 55 and receive a direct single payment or monthly payments determined by dollar amount or number of months before you reach age 59, the payment (s) will be subject to the Internal Revenue Service 10 % early withdrawal penalty tax.

If you withdraw funds prior to reaching age 59 1/2 a 10 % early withdrawal penalty tax may apply on any portion withdrawn that is attributed to investment earnings.