A taxpayer takes out $25,000 in early distributions from their retirement and is also forced to yield $50,000 per a QDRO to a former spouse pursuant to a divorce settlement. What is the amount of penalty they will pay on these withdrawals? Assume the taxpayer is under the age exceptions and has no other qualifying reasons for withdrawal. 

Answer rating: 100% (QA)

The taxpayer will only pay a penalty on the early withdrawal of 25000 no... View the full answer