"+helptextcontent;var helpSnippet = "";jQuery(".helpSnippetPlaceHolder").append(helpSnippet);} and penalties based on information you specify. No plan tax filings with IRS. We notice you're using an older browser with outdated security features. This information is provided for educational and illustrative purposes only and is not intended to constitute legal, financial, tax, or other advice. Suppose you are age 54 and you take $10,000 from your traditional IRA. Perhaps you'll be in a 25% tax bracket when you start taking distributions. You should obtain personal advice from qualified professionals. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. It does not take into account any income taxes that might apply when you withdraw the funds at retirement. Take into account any impacts resulting from the possibility of your plan provider suspending contributions for a period of time after a withdrawal is taken. However, withdrawals taken before the age of 59 ½ –referred to as early distributions – may be subject to a 10% tax penalty in addition to the applicable income tax liability. This article is part of The Motley Fool's Knowledge Center, which was created based on the collected wisdom of a fantastic community of investors. It's free and will improve your experience. This tool is intended to provide you with information to help you make informed decisions. 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