Early Withdrawal of Retirement Funds Quiz

If you put money into a tax-advantage retirement account, and then withdraw it before you are age 59 ½,

A. You will always be hit with a 10% penalty
B. You will always be hit with a 10% penalty, plus whatever money you take out will be added to your ordinary income for that year.
C. You will be subjected to a 10% penalty, but the money you withdraw will be treated as capital gains or loses.
D. You may not have to pay any taxes or penalties.

See the correct answer on the next page.