59 1/2
Your IRA Withdrawal Prior to Age 59 1/2. The general rule is that if you take an IRA withdrawal before 59 1/2 the IRS whacks you with a 10% penalty. So, ideally you need to wait on your IRA withdrawal until you reach that age. As with most IRS rules, there are some exceptions: IRS publication 590 lists these exceptions to the 10% penalty for early IRA withdrawals: 1  You have unreimbursed medical expenses that are more than 7.5% of your adjusted gross income If you are under 59 ½: If you withdraw any money from a traditional IRA, you'll be slapped with a 10% penalty on the amount you withdraw. That's in addition to the regular income tax you'll owe on your withdrawal. Bad idea. You can take money out of an IRA whenever you want, but be warned: if you're under age 59 ½, it could cost you. That's because the government wants to discourage you from raiding your IRA until you're retired. To make qualified distributions from a Roth IRA, you must be at least 59½ and it must be at least five years since you first began contributing. And if you converted a regular IRA to a Roth IRA, you can't take out the money penalty-free until at least five years after the conversion. You can take money out of an IRA whenever you want, but be warned: if you're under age 59 ½, it could cost you. That's because the government wants to discourage you from raiding your IRA until you're retired. Roth IRAs have different withdrawal rules. Because Roth contributions are made with post-tax money, you can withdraw them at any time with no tax and no penalty. However, if Roth contributions were rolled over from a traditional IRA, you can't withdraw them for five years or the 10 percent penalty will apply. Your IRA Withdrawal at Age 70 1/2. If you do decide to wait however, you won’t be able to leave that money in your IRA forever. At age 70 1/2 you will be required to take a minimum distribution (also known as RMD, which uses a formula set up by the IRS to determine the amount) and pay taxes on those withdrawals. The general rule is that if you take an IRA withdrawal before 59 1/2 the IRS whacks you with a 10% penalty. So, ideally you need to wait on your IRA withdrawal until you reach that age. But there are a variety of ways to avoid the IRA early withdrawal penalty if you meet specific criteria: Turn age 59 1/2. Once you turn age 59 1/2, you can withdraw any amount from your IRA without having to pay the 10 percent penalty. But regular income tax will still be due on each withdrawal. IRA distributions are not required until after age 70 1/2. [Read: How to Save for Retirement on a Small Salary.]. College costs.  You can take money out of your Roth IRA anytime you want. However, you need to be careful how much you withdraw or you may get stuck with a penalty. In order to make qualified distributions in retirement, you must be at least 59½ years old, and at least five years must have passed since you first began contributing.  You can withdraw money without penalty from a traditional IRA once you reach age 59 1/2, and you must begin taking money out at 70 1/2. Withdrawals before 59 1/2 may be subject to a 10 percent penalty from the Internal Revenue Service. Because Roth contributions are made with post-tax money, you can withdraw them at any time with no tax and no penalty. However, if Roth contributions were rolled over from a traditional IRA, you can't withdraw them for five years or the 10 percent penalty will apply. Generally, you may withdraw your contributions to a Roth penalty-free at any time for any reason, as long as you don't withdraw any earnings on your investments (as opposed to the amount you put in) or dollars converted from a traditional IRA before age 59 ½. In that case, you'll get hit with that same 10% penalty. You can take money out of an IRA whenever you want, but be warned: if you're under age 59 ½, it could cost you. That's because the government wants to discourage you from raiding your IRA until you're retired. IRA Age 59 1/2 Rule. The normal minimum age for penalty-free withdrawals from a traditional or Roth IRA is 59 1/2. Roth IRAs must also be at least five calendar years old. The five-year rule does not apply to traditional IRAs. Withdrawals made before these conditions are met normally result in a 10 percent penalty tax in addition to any income taxes due. You don't have to begin withdrawing money from your IRA as soon as you are 59 1/2. You do have to start required minimum distributions from traditional IRAs at age 70 1/2. There are no required distributions from Roths -- you can keep money in the account as long as you wish.
http://www.redeemingriches.com/2010/04/05/ira-withdrawal/ http://money.cnn.com/retirement/guide/IRA_Basics.moneymag/index6.htm http://money.cnn.com/retirement/guide/IRA_Basics.moneymag/index6.htm http://finance.zacks.com/age-can-withdraw-money-ira-tax-penalty-4020.html http://www.redeemingriches.com/2010/04/05/ira-withdrawal/ http://money.usnews.com/money/retirement/articles/2013/09/23/11-ways-to-avoid-the-ira-early-withdrawal-penalty http://money.cnn.com/retirement/guide/IRA_Roth.moneymag/index5.htm http://finance.zacks.com/age-can-withdraw-money-ira-tax-penalty-4020.html http://money.cnn.com/retirement/guide/IRA_Basics.moneymag/index6.htm http://www.ehow.com/facts_5729726_age-can-withdraw-ira-funds_.html
what age can withdraw ira