Description

This video by TV360 offers you expert advice on taking money from your individual retirement account and the penalties you would incur.

Transcript

How to Take Money from Your Individual Retirement Account Real Questions Larry: My name is Larry I’m from Southfield, Michigan. I’m 56-years-old and I’m concerned about taking money out of my IRA including retirement and what the consequences and pillages might be. Marilyn Littlejohn: Larry I’m glad you’re thinking twice about taking money out of your IRA because there are penalties and there are ordinary income taxes to consider of course there’s a 10% withdrawal penalty when you take money out of an account like that prior to age 59-1/2 and that also as you take a lump sum out of an account like that can actually change your ordinary income tax bracket so it’s a very expensive way to get money. I would consider if I were you consulting a tax adviser before you make the withdraw.