|Your Age||Withdrawal Rules|
|Younger than 591/2
|IRAs: Withdrawals are generally subject to a 10% penalty, unless you become disabled and cannot work, you die, or you set up a plan to make regular, equal withdrawals over your life. You cannot borrow from an IRA.|
Other exceptions to the rule against early withdrawals are:
401(k) accounts: You can borrow from your 401(k) but cannot withdraw money from it except for an IRS-recognized hardship, such as to pay medical bills, prevent eviction or foreclosure, pay college tuition, or make a down payment on your primary residence. And you still must pay the 10% penalty on early withdrawals. There is one important exception: If you're 55 or older and actually retired, you may make penalty-free withdrawals.
|591/2 to 701/2
|Withdrawals are optional.|
Traditional IRAs: The amount is included in your gross income for income tax purposes.
Roth IRAs: You are free to take out the money that you put into your Roth IRA anytime you want, and it will never be subject to a tax. However, the interest that your money earned while it was in the IRA is a different matter. Interest is tax free only if at least five years have passed since you established the Roth IRA.
|701/2 or older
Traditional IRAs: Withdrawals are mandatory. The minimum amount is determined by your age and that of your oldest beneficiary.
Roth IRAs: Withdrawals are optional.
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