What is the early distribution penalty for an IRA?
The law imposes a 10% tax (penalty), in addition to your regular tax on certain early distributions of retirement funds. Early withdrawals are those from a qualified retirement plan or deferred annuity contract before reaching age 59 1/2.
There are certain exceptions to this additional tax. Non-taxable distributions, such as rollovers or a distribution of your designated Roth IRA contributions are not subject to this 10% additional tax.