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 Internal Revenue Service Publication 2021

Internal Revenue Service 2021-2025 Form

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hi let's learn about IRS publication 590b IRS publication 590b explains the tax implications of withdrawing money from any type of individual retirement account before or after retirement it specifies when you can't withdraw money without paying a penalty and when you must withdraw money there are several types of IAS including the traditional IRA in the Roth IRA the sep and the simple IRA but the big distinction is between the traditional and the Roth IRA IRS publication 590b is organized to explain the different tax implications of these two types of Ira accounts keep an eye on the penalties detailed in publication 590b and the exceptions to those penalties for example most early distributions trigger a 10% penalty the penalty goes up to 25% if money is withdrawn during the first 2 years of participation in a simple IRA however a withdrawal for qualified higher education expenses or first-time home purchase is not subject to the Penalty here are three key takeaways on

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