Ira Mistakes

What happens if I withdraw from my IRA before age 59½?

You'll typically face a 10% early withdrawal penalty on top of regular income taxes on the withdrawn amount.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.