SIE: 8.2.10.1.2. Withdrawing From A Traditional IRA

8.2.10.1.2.  Withdrawing from a Traditional IRA

Traditional IRAs have required minimum distributions (RMDs) similar to the RMDs for employer-sponsored defined contribution plans such as 401(k)s. The RMD rules do not apply to Roth IRAs while the owner is alive. Please see the Required Minimum Distributions section later in this chapter for further details.

Most individuals will make pre-tax contributions to their traditional IRA. Any after-tax contributions can be withdrawn tax-free, but the individual must show evidence that taxes were paid on these contributions. Filing Form 8606 every year that a nondeductible contribution is made to an IRA is required by the IRS. While individuals can withdraw funds at any time from their accounts, if they make withdrawals before the age of 59