Question

We withdraw all of our simple IRA because of covid virus. We had to pay off scond mortgage.What emergency rate do we have to pay on taxxes

Forum|Forum|5 years ago
February 12, 2021
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We closed our IRA simple because when the covid hit in march we lost almost all the money, we had to pay off a second mortgage with that money. How much taxes do we have to pay

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IRA withdrawals are always subject to regular income tax rates, there is no break there. But, you can choose to spread the income out over 3 years, and you are exempt from the 10% penalty for early withdrawal if you certify that the reason is due to a covid-related hardship. The form you need was just finalized by the IRS and won't be included in Turbotax until February 24, so don't enter your 1099-R until then, and you will be able to access the covid-related withdrawal page.