Stop taxing the penalty/tax addition of IRA hardship early withdrawals

Liberty
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1

When people take IRA early withdrawals due to financial hardship, they should not be taxed/penalized on the extra amount they had to withdrawal - to pay the taxes on the initial withdrawal.

For example, a $60,000 financial hardship withdrawal cost an extra $15,000 due to the 10% penalty and tax due estimate. At tax time the extra money that had been withdrawn solely to cover the government taxes, had to be claimed as income and was taxed again on personal income taxes - driving the person, taking the loan into a higher tax bracket and forcing them to take out another loan just to pay the resulting tax bill.

1 Like
2

IRA accounts should not be taxed and withdrawals should not be taxed! THAT money belongs to AMERICANS who have labored for that money. THAT BELONGS TO THEM and not the federal government. Currently, if the IRA holder borrows money, it has to be repaid and the GOVERNMENT puts a 15%+ interest rate until that withdrawal is paid back. BUCK THAT! THAT is federal tyranny.