IRA withdrawal fees/penatlies?

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catloverdawn
catloverdawn Member Newcomer
edited January 15 in Retirement Income

I am 58-years-old and own two retirement accounts: (1) a Rollover IRA and (2) a Roth IRA; together they total just under $24,000. I’ve been disabled, on Social Security Disability for 12 years, and therefore not permitted to contribute to either account. If I were to take any money from either account, would I be subject to any fees, penalties, or repayment rules?

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  • MatthewD
    MatthewD FreeTaxUSA Team
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    Hi Catloverdawn,

    Once you reach 59 1/2 years old, you can start withdrawing retirement distributions without any early withdrawal penalties.

    You can withdraw your basis (contributions) from the Roth IRA without any tax consequences now, but you will be taxed and have penalties on the earnings.

    Any distribution from the IRA will have additional 10% penalties until you reach 59 1/2.

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  • catloverdawn
    catloverdawn Member Newcomer
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    Thank you!!

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