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Learn about common IRA mistakes that can cost you thousands in taxes and penalties. Discover withdrawal errors, contribution limits, and rollover pitfalls to...
You'll typically face a 10% early withdrawal penalty on top of regular income taxes on the withdrawn amount. However, there are exceptions like first-time home purchases, qualified education expenses, or medical emergencies that may waive the penalty. The IRS considers early withdrawals as taxable income, so you could also bump yourself into a higher tax bracket depending on the amount.