Author Topic: losses in IRA go towards penalties ?  (Read 1285 times)

Offline surfivor

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losses in IRA go towards penalties ?
« on: February 10, 2013, 06:49:02 AM »

 What was Jack talking about in the recent listener call in show about IRA's ? It sounded like he was saying if you lost money in your IRA because the value declined and then you took an early withdrawal, then the loss can be applied to the early withdrawal penalty ? Did I hear that right ?

Offline cohutt

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Re: losses in IRA go towards penalties ?
« Reply #1 on: February 10, 2013, 07:20:34 AM »
I don't know what Jack said but the answer is no, unless you consider the fact that you pay less tax and less penalty on the withdrawal because you have less money being withdrawn.