A client withdraws funds from a traditional IRA before age 59.5 without qualifying for an exception. The tax consequence is generally:

a.Ordinary income tax plus a 10% early withdrawal penalty
b.No tax at all
c.Tax-free treatment like a Roth
d.A 50% excise tax

Explicación

Early distributions from a traditional IRA before age 59.5 are generally subject to ordinary income tax plus a 10% penalty, absent a qualifying exception such as certain medical or first-home costs. Traditional IRA withdrawals are not tax-free. The penalty discourages premature use of retirement funds.

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