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Withdrawals from IRAs
Withdrawals from both traditional and Roth IRAs generally fall into two categories: qualified and nonqualified. Each type of IRA has different rules for these withdrawals and it is recommended that you obtain advice from an investment professional or tax consultant prior to making a withdrawal to determine how it may affect your individual tax liability.

 

Traditional

Roth

When can I withdraw my money penalty-free?

At age 59½ or older

Age 59½ or older

What is the penalty for withdrawals before age 59½?

Subject to income tax and 10% federal early withdrawal penalty

Subject to ordinary income tax and 10% federal early-withdrawal penalty

Besides death or disability, are there exceptions to the penalty rules?

Yes, for qualified college costs, medical expenses, medical insurance or if you establish periodic withdrawals.

Yes, for qualified home purchases, college costs, medical expenses, medical insurance or if you establish periodic withdrawals.

When am I required to begin making withdrawals?

The year you reach 70½

Mandatory withdrawals are not required

Can I withdraw contributions tax-free?

No

Yes, after five years

What is the five-year rule?

Does not apply

If the account has been open less than five years, even if you are 59 ½ or older, withdrawals are subject to federal and state income taxes.

Can I have my custodian transfer an account without penalties?

Yes

Yes


Source: www.irs.gov

NOTE: Please consult your tax professional regarding your specific needs.