SEP IRA

Question: What is the penelty for cashing out a SEP IRA, roth ira and an individual ira prior to retirement?

Being laid off a last resort might be to cash is retirement to pay off mortgage. What are the downfalls?Thanks

Answer: ROTH – after 5 years of that money being in the account, you can take the money out without the 10% penalty.
Read all the rules – there may be something there about not paying the 10% penalty if you are unemployed – so many rules – makes your head spin.
IRA – you will pay 10% penalty plus current tax rate – which if you are unemployed may be LOW.
SEP – have no clue.
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