How much do you lose if you cash in an ira?

Generally, early withdrawal from an individual retirement account (IRA) before age 59 and a half is subject to inclusion in gross income plus an additional 10 percent tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your health insurance premium after you lose your job. If you make withdrawals in your IRA before age 59 and a half, you may have to pay a 10% penalty in addition to income tax. Below, you'll find exceptions that may allow you to make a withdrawal without penalty.