IRA withdrawals: Age 59½ to 70

Although you can start making penalty-free withdrawals between age 59½ to 70, you can also choose to leave your money and let it have it have the potential to grow.

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Between the ages of 59½ and 70, you are allowed—but not required—to make IRA withdrawals from your Traditional IRA without penalty.

Traditional IRA rules

There are three things to consider for Traditional, Rollover, SEP, and SIMPLE IRA withdrawals:

  • Step

    Your plan

    Do you have an overall retirement plan in place? Learn how to turn savings into income and how to generate retirement income that can last.

  • Step

    Taxes

    You can withdraw money any time after age 59½, but you’ll need to pay income taxes on part or all of any IRA withdrawals you make.

  • Step

    Savings growth vs. emergencies

    Need money for unexpected expenses? We suggest you consider all other options before making a withdrawal from a tax-advantaged IRA—so that your savings can continue.

Withdrawal options

You can make a one-time (also known as "lump-sum") withdrawal or a series of withdrawals, or schedule automatic withdrawals. After you reach age 70½, you must take annual withdrawals, called Required Minimum Distributions (RMDs), from your Traditional IRA.

At Schwab, we offer clients several withdrawal options including:

Roth IRA rules

If you're at least age 59½ and your Roth IRA has been open for at least five years, you can withdraw money tax- and penalty-free. See Roth IRA rules for ages 59½ to 70.

With a Roth IRA, there are no required distributions as there are with a Traditional IRA.

Inherited IRA rules

If you’re between age 59½ and 70, there are several important factors that impact annual distributions from an Inherited IRA (not an IRA that you’ve simply transferred on your own). Keep in mind:

  • You need to take an annual distribution regardless of your age.
  • Generally, you need to take distributions over your lifetime or within five years after the original account holder passed away.
  • With an Inherited Traditional IRA, you will pay taxes on distributions. Rollover, SEP, and SIMPLE IRAs become Inherited Traditional IRAs.
  • With an Inherited Roth IRA, you will not pay taxes on distributions.

Take the next step

  • Take the next step

    Want to make a withdrawal? Schwab clients can go to Transfers & Payments in their online account, or call us at 866-855-5636 for help. 

On-page disclosure

This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager. Depending on the type of account you have, there are different rules for withdrawals, penalties, and distributions.  Please understand these before opening your account.

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