Ed Slott and Company, LLC |

 

Traditional IRAs and Roth IRA Contributions: Today's Slott Report Mailbag

Question: Here is the situation. The mother is deceased and the father is in jail. He has two minor kids that need the money out of his traditional IRA. Could all of the money be taken out and considered a hardship distribution to avoid the 10% penalty on the entire account? Answer: Unfortunately, no. There is no such thing as a “hardship distribution” with IRA accounts. A 10% early withdrawal penalty generally applies to IRA withdrawals taken before age 59 ½. But the tax code includes several exceptions to the 10% penalty for withdrawals taken for certain specific reasons. For example, taking a withdrawal to cover the costs of higher education expenses, first time home buying, and health insurance if you are unemployed all qualify for the penalty exception. Read More

Consumers - We want your questions!

Email your questions to us at mailbag@irahelp.com. Selected questions will be featured every Thursday in the Slott Report.

What is an Elite IRA Advisor?

Ed Slott, CPA | Amer...

Why You Should Atten...

The Benefits of Work...

Ed Slott Explains Ho...

What Makes an Elite ...

Ed Slott gives his V...

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.