at what age can i withdraw money from the IRA without penalty fee?

Answer 1

59.5 but there are exceptions like substantially equal payments until you are 59.5 or 5 years which ever is longest.

Answer 2

Shiprepa is correct that you can take funds from an IRA prior to age 59.5 under code section 72t. This provides that you take substantially equal payments, at least annually, for the longer period of 5 years or until age 59.5. Once you have satisfied this you can change or end your distributions.

The amount you get to take each period is calculated using one of three methods, all of which are related to life expectancy.

This allows you to pay only regular income tax and not pay the premature penalty of 10%. If you change this arrangement before the period minimum is met, you will be retroactively penalized 10% for all funds withdrawn!

There are a few other exceptions to the early penalties; consult a Certified Financial Planner before you make decisions regarding this.

Answer 3

You cannot withdraw money for higher education from a traditional IRA without paying taxes. If your withdrawal is less than your qualified education expenses for the year, then the 10% early withdrawal penalty is waived. However, you still will pay income tax on the amount withdrawn.

Answer 4

Shiprepa is right. 59.5 is absolute, if you have held it for 5 years. The key is 5 years. Example---I'm 58.5, I open an Ira, for tax purpose's. I turn 62 and want/need this money. If I take this money out at this age it's not tax free, I would owe the tax on the full amount of the gain. If I waited until age 64.5 it would all be tax free.(5yr)

Answer 5

59 1/2.

shiprepa is partially correct about the 'substantially equal payments' exception. The actual term of the payments is your life expectancy.