IRA Rules

Archive for March, 2007

Question: rules on withdrawing money from an IRA before age 59 1/2?

Answer: For a 401K, unless it’s for a true hardship, you will pay a stiff penalty. Check with your plan administrator but I believe it’s around 25%, plus you will have to pay taxes on the amount if if was on a pretax plan and lose the the money’s ability to work for you in the inventment. Unless you have absolutely no other option, it’s really best to leave the money alone. You’ll be glad you did later.