IRA and Roth IRA Withdrawals

Get Answers to 7 Critical IRA Questions
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Whether you're already retired or still building your career, this guide provides valuable insights to help answer your 401(k) and IRA questions.

Get 401(k) and IRA Tips and Answers

Required Minimum Distributions

Withdrawals under age 59½:

Withdrawals under age 59½ will incur both federal and state taxes as well as a 10% penalty.  In some states, a state penalty may also be charged.  While there are specific situations where you can avoid the early penalty, you should always consult with your tax advisor and discuss your specific situation before taking any withdrawals. 

Withdrawals under age 70½:

Once you reach 59½ you can take withdrawals from IRA with no penalties.  However, withdrawals will be taxed as ordinary income and you will need to pay any due taxes. Please consult with your tax advisor to discuss your specific situation.

Withdrawals age 70½ and older:

At age 70½ you are legally mandated to begin withdrawals from your IRA (with Roth IRAs excluded).  The amount you have to take varies from person to person.  It's calculated by dividing the prior year-end fair market value of the IRA by the applicable distribution period.  You should contact your custodian to calculate your Required Minimum Distribution (RMD) amount.  Some accounts allow you to defer your RMDs until retirement even if you're over 70½.