Will I be charged a penalty if I close my Retire account?
Yes. If you have a Roth IRA, you may close your account and withdraw your funds at any time. However, if you have not yet reached 59 ½ years old, you may be subject to penalties and taxes by the IRS. This also applies to Retire accounts that have been open for less than five years.
If you have a traditional IRA, you can also take money out of the account at any time, but before age 59 ½ you may have to pay a 10% penalty to the Internal Revenue Service (IRS) in addition to income taxes. For most people, that rate is around 20% for federal taxes. So, you could essentially lose close to a third of the value of the money you pull out early.
We are not able to offer tax advice, so if you have further questions about the taxes and penalties related to closing an IRA, please consult a tax professional.
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