Suppose a taxpayer is trying to decide between saving outside an IRA or saving through a traditional IRA If the taxpayer needs the savings before reaching age 59 , should he or she necessarily avoid the IRA because of the 10 early withdrawal penalty Why or why not If the taxpayer must make a withdr...

A taxpayer trying to decide between saving outside an IRA or through ...

Suppose a taxpayer is trying to decide between saving outside an IRA or saving through a traditional

Question:

Suppose a taxpayer is trying to decide between saving outside an IRA or saving through a traditional IRA. If the taxpayer needs the savings before reaching age 59 ½, should he or she necessarily avoid the IRA because of the 10% early withdrawal penalty? Why or why not? If the taxpayer must make a withdrawal before age 59 ½, which IRA might be better, the traditional IRA or the Roth IRA?

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