Franny Mae is 75 years old and has an IRA with a fair market value of $389,840. What penalty would she have incurred if she had made an early withdrawal of $12,000 to pay off her debts?
Ms. Mae will not have to pay any penalty, as she is over 59 1/2 years old. After 59 1/2, a person can withdrawal any amount from his/her IRA without incurring a penalty.
