You can withdraw from an IRA at any time, but the rules and penalties depend on your age and the type of IRA:
- For a traditional IRA, you can withdraw funds without penalties starting at age 59½. Withdrawals before this age typically incur income taxes on the amount withdrawn plus a 10% early withdrawal penalty, unless certain exceptions apply. Starting at age 73, you must begin taking required minimum distributions (RMDs) each year.
- For a Roth IRA, you generally must be at least 59½ and have had the account for at least five years to take tax- and penalty-free withdrawals of earnings. Contributions to a Roth IRA can be withdrawn anytime without taxes or penalties. There is no required age to start taking withdrawals from a Roth IRA, and no required minimum distributions during the account owner's lifetime.
- Early withdrawals (before 59½) may avoid penalties in certain cases, such as first-time home purchases, qualified education expenses, disability, and others as defined by IRS rules.
In summary:
- Age 59½: Penalty-free withdrawals allowed for both traditional and Roth IRAs (with Roth having the 5-year holding requirement for earnings).
- Age 73: Required minimum distributions begin for traditional IRAs (not required for Roth IRAs).
- Withdraw anytime, but withdrawals before 59½ may have taxes and penalties unless exceptions apply.
This means you can withdraw from your IRA at any time, but to avoid penalties and taxes, the best age to withdraw without penalty is 59½, and required distributions start at age 73 for traditional IRAs. Roth IRAs have more flexible withdrawal rules without mandatory distributions.
