pre age 59 1/2 withdrawal

L1: pre age 59 1/2 withdrawalAssuming a $100,000 IRA….and If I were to withdraw $10,000 from my IRA and then later in same tax year start a monthly 72t distribution based upon the $90,000 remaining, am I correct to assume that I would only incur the 10% tax penalty on the $10,000 wihtdrawal since the monthly withdrwals were made based upon a 72t caluclation?
Thanks.2005-09-20 22:45, By: BH, IP: [216.153.167.67]

L2: pre age 59 1/2 withdrawalYou would also incur the federal income tax (and possibly state income tax, except in PA).
You should consider whether this income would push you into a higher tax bracket, and what the total taxes would be, in determining how much you would actually have left.
Also, consider all other options for the money, because this may be the most expensive.
You might get some good, alternative ideas if you stated your complete financial and tax position more fully, and marital status (which affects your tax bracket).2005-09-20 23:04, By: dlztaxes, IP: [4.175.9.43]

L2: pre age 59 1/2 withdrawalTo dlztaxes:
I think your responsewas premature when you said withdrawls are taxable “except in PA.”
To avoid the PA tax, one must use the cost recovery method and in this particular case, “who knows” how much of that withdrawl was attained through gains or contributions (that were previously taxed by the state).
In closing, I am not aware of any IRA that tracks pre-tax and post tax contributions (like many 401k plans do).
Regards,
gus2005-09-21 05:28, By: gus, IP: [206.148.24.33]