The show is a smart mix of humor and social commentary, and has had a diverse lineup of guest stars, including Colin Hay of Men at Work, Brendan Fraser, Dick Van Dyke and, in one of his...read more.
Traditional IRA distributions are taxable and, unless you're 59 1/2 years old, subject to an extra 10 percent tax penalty. However, if you qualify as a first-time home buyer, you avoid the additional tax, but not regular income taxes, on your distribution. For example, assume you're not yet 59 1/2 years old, that you pay a 25 percent tax rate and that you take a $10,000 distribution for your first home.
Early Withdrawal Penalties. When you're under 59 1/2, a 10-percent additional tax penalty applies to the portion of your IRA distribution that is subject to income taxes. For example, a taxable $10,000 traditional IRA distribution results in an extra $1,000 in taxes owed.However, if you removed $10,000 in contributions from your Roth IRA so none was taxable, you wouldn't owe any penalties. This penalty is in addition to, not instead of, any income tax you owe on the distribution.arly Withdrawal Penalties. When you're under 59 1/2, a 10-percent additional tax penalty applies to the portion of your IRA distribution that is subject to income taxes. For example, a taxable $10,000 traditional IRA distribution results in an extra $1,000 in taxes owed.