If you withdraw funds from a traditional IRA before reaching age 59½, you may generally incur a 10% early withdrawal penalty in addition to regular income taxes on the withdrawn amount. There are exceptions, such as for certain qualified expenses like higher education or first-time home purchases. Roth IRAs also have early withdrawal penalties on earnings (not contributions) if not qualified, but you can typically withdraw your Roth IRA contributions at any time without penalties or taxes.