IRA Withdrawals and Distributions

Whether you're ready to enjoy your retirement savings or just need extra cash, it's important to know the rules before withdrawing from an IRA.

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

Depending on the type of account you have

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.

Before you decide to take money out of your Traditional IRA, keep in mind that there are age restrictions for making a penalty-free withdrawal. The funds in your Traditional IRA account are meant to benefit you more in the long run, and withdrawing them early can minimize the potential gains on your earnings. You will also have to pay income taxes on the amount you distribute, as money in a Traditional IRA is tax-deferred. 

See more details about Roth IRA withdrawals and Inherited IRA withdrawal rules.
 

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).

    See more withdrawal exceptions

  • 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.  

    See more about withdrawals

  • 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 about RMDs

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