Posts Tagged ‘early distributions’

Is The Early Distribution From Your Retirement Plan Taxable???

Tuesday, February 21st, 2012

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice.

As frustrating as it may be, the best answer to this question may be “it depends!”  It depends on what?  The facts and circumstances of your particular situation.  It can be relative simple, i.e. an IRA plan rollover that is completed in 60 days, you fulfilled all of the requirements for the rollover,  and you had no access to the funds during the 60 day time period = not taxable, or it can be somewhat more complicated, i.e. you were age 53 when you made the withdrawal but you had a significant “cost basis” in your IRA, but you did not keep the required files and records to quantitatively determine your “cost basis.”   One of the best reference documents which is available on this subject is IRS Publication 590, “Individual Retirement Arrangements”.  (http://www.irs.gov/pub/irs-pdf/p590.pdf )  (more…)