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G
g510432
June 6, 2021
Question

If we withdraw the down payment for a second home from our IRA this summer, will we be subject to underpayment penalty for 2021 taxes?

  • June 6, 2021
  • 1 reply
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1 reply

B
Bsch4477
Employee
June 6, 2021

The withdrawal will be subjected to tax at your normal rate. If a premature withdrawal,  you would also pay a 10% penalty. To avoid an underpayment penalty you should withhold for the year at least as much as your prior year’s  tax liability. 

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