withdrawing funds from a traditional ira prior to age 59 1/2 incurs an additional tax of\na. 12%.\nb…
withdrawing funds from a traditional ira prior to age 59 1/2 incurs an additional tax of\na. 12%.\nb. 10%.\nc. 3%.\nd. 20%.
Answer
Brief Explanations:
Traditional IRAs have rules to discourage early - withdrawals. Withdrawing funds from a traditional IRA before age 59 ½ typically incurs an additional 10% tax penalty in addition to any ordinary income tax due on the withdrawal amount. This is to encourage individuals to keep their retirement savings intact until a more appropriate age.
Answer:
B. 10%