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11 Ways to Avoid the IRA Early Withdrawal Penalty

Alamy By Emily Brandon If you withdraw money from your individual retirement account before age 59½, you will generally have to pay a 10 percent early withdrawal penalty in addition to income tax on the amount withdrawn. This means a $5,000 withdrawal taken by a mid-career worker in the 25 percent tax bracket would result in $1,750 in taxes and penalties. But there are a variety of ways to avoid the IRA early withdrawal penalty if you meet specific criteria: Turn age 59½.
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