Individuals normally incur a tax penalty if funds are drawn from an IRA before the age of 59-1/2.

Question

Quizplus · Accepted Answer

This is true. Individuals generally incur a penalty of 10% on the amount withdrawn from their traditional or Roth IRA if they do so before reaching the age of 59-1/2. There are some exceptions to this penalty, such as for certain medical expenses or first-time homebuyers, but these must be met in order to avoid the penalty.

Individuals Normally Incur a Tax Penalty If Funds Are Drawn