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View Full Version : 10% or 25% Penalty For Early IRA Withdrawl???



Silvertop
5th July 2008, 14:49
Hey--

Just a quick question. Does anyone know whether or not a simple IRA early distribution incurs a penalty of 10% or higher? I've read a couple of publications on the IRA website, but generally, it's clear as mud. They mentioned a 25% penalty, but it appears it may apply to business IRA's??, but I was thinking that it was only 10% and the balance taxable as income.
I am looking to buy :rolleyes:silver with this instead of a rollover PM account.

Thanks for any input.

Scrap Metal
5th July 2008, 18:07
Generally it is a losing proposition to close an IRA early. It is better to move it to something else, a rollover. Find something that gives you the yield that you want balanced with the risk that you are willing to take.

As far as I know, American Eagle coins are eligible for IRA's, but a bank or other qualified financial institution must hold them. So there will be a service fee. This would eliminate a 10% penalty and taxes, however. So you will be way ahead doing this. Ask the IRS and a bank how to do this kind of rollover. Get the IRS part in writing!

Since some fear an eventual confiscation of PM's by the government, this would leave you vulnerable. My advice is to find a mutual fund or CD or annuity or whatever you feel best with, and roll the IRA over. Then start buying PM's instead of funding the IRA.

pkrebaum
6th July 2008, 16:21
Cashed mine in. Had 10% withheld. Bought the Silver. Paid tax on the extra income @ tax time. Turned a profit, and then some, within one year.

Had another IRA, but my "other half" wouldn't let me buy any more PMs. So I took it and rolled it over into a 36 month CD (qualifies as an IRA, no penalty for the rollover) at my local bank. Why ? Most IRAs are NOT FDIC insured, the bank CD (up to $250,000) is. If you look at the fine print, virtually all IRAs and 401Ks are SIPC insured, which is a private company with only a few billion in assets. One medium-sized investment house goes down and they are bust.... and your money is vapor.

Phaeton
17th August 2008, 08:20
......Sweet Jesus...... I would take World of Warcraft spam over this any day of the week! YOU'VE BEEN FLAGGED!

JesterJay
17th August 2008, 20:31
10% penalty on top of income taxes due on the amount of the withdrawal.
Still glad I did it,
JesterJay



Hey--

Just a quick question. Does anyone know whether or not a simple IRA early distribution incurs a penalty of 10% or higher? I've read a couple of publications on the IRA website, but generally, it's clear as mud. They mentioned a 25% penalty, but it appears it may apply to business IRA's??, but I was thinking that it was only 10% and the balance taxable as income.
I am looking to buy :rolleyes:silver with this instead of a rollover PM account.

Thanks for any input.

buff
18th September 2008, 20:14
Gee Wizz...you guys make so much money and still you have time to come here and tell about it. Say...is silver still going to $100 per ounce?

MetalWorx
19th September 2008, 02:05
...how this is all this guy can say.(maybe he forgot he asked before....more then once:rolleyes:)

You know, I really wish I had put more money in the stock market.....:lol:



Gee Wizz...you guys make so much money and still you have time to come here and tell about it. Say...is silver still going to $100 per ounce?