Series 24: Withdrawing From A Traditional IRA

Withdrawing from a Traditional IRA

The IRS requires individuals to begin taking funds from their traditional IRAs by April 1 after the year they turn 70 1/2. Withdrawals can be taken as a lump sum or as periodic payments. Most individuals will make pre-tax contributions to their traditional IRA. Any after-tax contributions can be withdrawn tax-free, but individuals must show evidence that taxes were paid on these contributions. While individuals can withdraw funds at any time from their account, if they make withdrawals before the age of 59 1/2, they will be taxed on both their pre-tax contributions and their earnings and face an additional 10%