Are there any fees or penalties for early withdrawal?

Yes, there are fees for withdrawing funds from your Honest Dollar retirement account that will be charged by the custodian, Apex Clearing Corporation.  To review these fees click here.  

 In addition to these fees, under certain circumstances, the Internal Revenue Service (IRS) may assess a 10% early withdrawal penalty if an account holder withdraws funds from their retirement account(s) before turning 59 ½.  

Roth IRA: The Roth IRA allows access to principal funds at any point without any early withdrawal penalty (except for withdrawals of amounts converted from other IRAs or eligible retirement plans within 5 years of the conversion).  However, gains on investment may be subject to an early withdrawal penalty.

To learn more about these tax implications and any exceptions to this tax rule, please click here.

Traditional and SEP IRA: Traditional and SEP IRAs typically are subject to a 10% penalty for early withdrawal before age 59 ½. The withdrawal will generally be treated as income and be subject to income tax as well.  To learn more about withdrawals from your IRA account, please click here. 

Honest Dollar does not offer tax planning advice.  You should consult with a tax professional that can provide you with an assessment of your tax situation.