when can you withdraw from ira without penalty

You can withdraw from an IRA without penalty starting at age 59½. For traditional IRAs, withdrawals made before 59½ generally incur a 10% early withdrawal penalty and are subject to income tax. However, there are several exceptions where penalty-free withdrawals are allowed before this age, such as total and permanent disability, a first-time home purchase (up to $10,000), qualified education expenses, certain medical expenses, health insurance premiums during unemployment, substantially equal periodic payments, military reservist active duty, and IRS levies. For Roth IRAs, contributions can typically be withdrawn anytime without penalties or taxes, but earnings withdrawn before age 59½ or before the account is five years old may be subject to taxes and penalties unless qualifying exceptions are met.

Key Points on IRA Withdrawals Without Penalty:

• Age 59½ : Standard age when penalty-free withdrawals begin for both traditional and Roth IRAs.
• Traditional IRA : Withdrawals before 59½ usually incur a 10% penalty plus income tax, unless exceptions apply.
• Roth IRA : Contributions withdrawn at any time penalty-free; earnings may face penalties if withdrawn before 59½ unless certain criteria are met (e.g., account held for 5 years, disability, first-time home purchase).
• Penalty-Free Exceptions (before 59½):
  • Total and permanent disability
  • Death of the IRA owner
  • First-time home purchase (up to $10,000)
  • Qualified education expenses
  • Unreimbursed medical expenses exceeding 7.5% of adjusted gross income
  • Health insurance premiums during unemployment
  • IRS levy on the IRA
  • Military reservist called to active duty
  • Substantially equal periodic payments
  • Birth or adoption expenses (up to $5,000 for Roth IRAs)

Taxes

• Traditional IRA withdrawals are subject to ordinary income tax.
• Roth IRA qualified withdrawals (after age 59½ and 5-year holding) are tax-free.
• Early traditional IRA withdrawals face a 10% penalty unless an exception applies.

This guidance is according to IRS rules and common financial advice as of 2025.