Withdrawals from a traditional IRA prior to the age of 59½ are
A) tax deferred until you reach 65 years of age.
B) tax-free.
C) normally subject to a penalty and taxes on the income that is withdrawn from the IRA.
D) subject to a possible denial after review by the Internal Revenue Service.

Question

Quizplus · Accepted Answer

Withdrawals from a traditional IRA prior to the age of 59½ are generally subject to a 10% penalty and taxes on the income that is withdrawn from the IRA. There are some exceptions to the penalty such as certain medical expenses or first-time homebuyer expenses but income tax is still due on the withdrawal.

Withdrawals from a Traditional IRA Prior to the Age of 59½