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Yvette is thinking about closing out her IRA & Roth IRA at the beginning of the year. She is thinking it will only be a 10% Penalty fee I say it is more like 30% tax hit. Has anyone closed theirs? What was your fee?

Also will she have to pay the fee at the time that she closes the accounts or at the end of the year during tax time?
 

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You are correct - the bank and IRS wil access penalties . The bank fee will be immediate but the IRS bollocks would need a 1099 . Er , I think - better ask someone who can actually manage their $ !
 

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It's only 10% penalty unless you qualify for one of the select few exemptions there are. I don't know what those are, but I'm sure a Google search would find you the info.

There's no other penalites or taxes on the ROTH since your money went in after taxes (last time I checked). Regular IRA are subject to taxes on the increase you received.
 

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there is a 10% penalty on the reg ira.....plus you are gonna pay your ordinary income tax (federal and state)....so yes depending on ur income you could be talking about 30 to 50% total tax. The roth ira, you will pay taxes on your tax deferred gains the roth has had since its inceptions unless you meet the rules ( i think you had to have the roth at least 5 years...might be some other rules, cant remember em right now)
 
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