Taxpayers can withdraw funds before they are eligible or contribute excess funds to an IRA during any given year. There is typically an additional 6% tax on excess contributions and an additional 10% tax for early withdrawal of funds.

The taxpayer has until the due date of the tax return, including extensions, to correct either of these conditions and avoid the additional tax.

In other words, taxpayers who have evidence of a valid use for the withdrawn funds and wish to alleviate the additional tax should seek assistance from a professional tax preparer.