What is the age you can take funds out of an IRA without being taxed?

Answer 1

Are you talking regular IRA or Roth IRA?

There isn't any age for a regular IRA, no matter what age you are you have to pay taxes on distributions, and if you are under 59 1/2 you have to pay an additional 10% penalty for early distribution unless you meet certain exceptions.

In general, you do not include in your gross income qualified distributions from your Roth IRA. You may have to include part of other distributions from Roth IRA(s) in your income.

A qualified distribution is generally, any payment or distribution made after the 5–taxable–year period beginning with the first year for which a contribution was made to a Roth IRA set up for you, and that is made on or after you reach age 59 1/2, made because you are disabled, made to a beneficiary or to your estate after your death, or that is made to buy, build, or rebuild a first home.

A distribution used to buy, build or rebuild a first home must be used to pay qualified costs for the main home of a first time home buyer who is either yourself, your spouse, or you or your spouse's child, grandchild, parent, or other ancestor.

Part of any distribution that is not a qualified distribution may be taxable as ordinary income and subject to the additional 10% tax on early distributions. Distributions of conversion contributions within a 5–year period following a conversion may be subject to the 10% early distribution tax, even if the contributions have been included as income in an earlier year. Refer to Topic 558 , Early Distributions from IRA's, for more information.

If you converted your traditional IRA to a Roth IRA, but were not eligible to do so, your conversion will be treated as a taxable distribution from your traditional IRA and a regular contribution to your Roth IRA, and may be subject to additional tax on early withdrawals and an excise tax on excess contributions, unless the converted amount is recharacterized.

You may recharacterize your Roth IRA conversion by directly transferring the amount converted (including all net earnings from the date of conversion) back to a traditional IRA. You may do this prior to the due date, including extensions, for filing your tax return. Show the conversion on Form 8606 (PDF). Refer to the Form 8606 Instructions for information on reporting recharacterizations.

Answer 2

If it's a traditional IRA, there is no age where the distributions are tax-free. You will ALWAYS pay income tax on the distributions regardless of your age.

If you are under age 591/2 at the time of the distribution there is an additional 10% penalty tax in most cases on top of the ordinary income tax. You may be able to avoid the 10% penalty in some special cases, but income tax is ALWAYS due on the distributions.

Answer 3

At 59-1/2 you won't pay penalties, but if it's a traditional IRA you will still pay income tax on the withdrawal when ever you take money out.

There are a few exceptions to having to pay a penalty before age 59-1/2

Answer 4

It's always taxable unless you made non-deductible contributions or have the money on a Roth IRA- if you withdraw money before age 59-1/2 you pay a 10% penalty on top of the income tax

Answer 5

If you took a tax deduction for contributions to your IRA, then when you withdraw that money, and the earnings on that money, you will pay income tax regardless of your age. If you are under age 59.5 you generally will also pay a 10% penalty in addition to income tax on your withdrawal.

If you have a Roth IRA, for which you do not take a tax deduction for contributions, you can withdraw your contributions tax-free regardless of your age. If you wait until age 59.5 and have had the Roth IRA open for five years, you can withdraw all earnings tax-free as well.

Answer 6

You'll always be taxed taking the funds out of an IRA. The principal and interest are tax-deferred until withdrawn.

Answer 7

You can take IRA distributions out at 59 & 1/2 year old with out being assessed the 10% penalty if all the IRA contributions you made were deductible for you. You can take non deductible contributions any time from your IRA.

There are also several exceptions if you qualify for them including an amount used for the first time purchase of a home....

See IRS publication 590. The link for it is below.

I would suggest seeking the advice of a CPA.

I am a CPA and will offer my services to you if you email me.

Good luck,

Answer 8

59 1/2 if you are meaning penalty tax.

Answer 9

59 1/2 check your plan document

Answer 10

59