Apparently suffering financial hardship does not let you tap your IRA penalty-free, according to the Tax Court.

 

A taxpayer under age 59½ who lost her job and took payouts from her qualified dollars to assist in supporting her family.

 

Afterwards the IRS assessed the usual 10% penalty on early withdrawals, the taxpayer argued it shouldn’t apply because family finances were tight. While the Court was sympathetic to her plight, the law does not provide a waiver for financial hardship.

 

Elaine, TC Memo. 2017-3

 

 

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