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Retirement & Planning
 

Withdrawals & Distributions

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IRA Withdrawals and Distributions

Depending on the type of account you have, there are different rules for withdrawals and distributions. If you have a Traditional, Rollover, SEP, or SIMPLE IRA and are nearing age 70½, it’s essential to learn about Required Minimum Distributions (RMDs). Roth and Inherited IRAs have their own rules.

Need IRA help? Call 866-855-5636 or download our RMD Guide.

At a glance: Taking money out of a Traditional IRA.

Age 59 and under

10% withdrawal penalty and taxes apply

The penalty may be waived for:

  • Unreimbursed medical expenses
  • Higher education expenses
  • First-time home purchase (up to $10,000) 
 

Age 59½ to 70

No withdrawal penalty but taxes apply

  • Withdraw money penalty-free when you turn 59½.
  • Withdrawals are taxed as ordinary income.
  • Mandatory withdrawal at age 70½.
 

Age 70½ and over

Annual withdrawal required and taxes apply

  • Annual withdrawals are called Required Minimum Distributions (RMDs) and are taxed as ordinary income.
  • A 50% penalty applies if you don’t take an RMD.

See more details about:   Roth IRA withdrawals  |  Inherited IRA withdrawal rules




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Questions about IRA withdrawals and distributions? We're here to help.

Call 866-855-5636.