Question
Joe is 57 years old and unemployed. He decides to take an early withdrawal or distribution from his IRA to make ends meet. Which of
Joe is 57 years old and unemployed. He decides to take an early withdrawal or distribution from his IRA to make ends meet. Which of the following applies to Joe as a result of this transaction? A. Joe incurs a 10% Federal penalty because he withdrew funds for an unqualified purpose before he was 59 years old B. Joe incurs a 15% Federal penalty because he withdrew funds for an unqualified purpose before he was 59 years old C. Joe incurs a 20% Federal penalty because he withdrew funds for an unqualified purpose before he was 59 years old D. Joe does not incur a penalty because he is over the age of 55
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