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 1st after the year they turn 70½. Withdrawals can be taken as a lump sum or as periodic payments.

While individuals can withdraw funds at any time from their account, they will be taxed on the withdrawals and receive an additional 10% penalty if they make withdrawals before the age of 59½. They can avoid the penalty if the withdrawal is for one of the following