IRA withdrawal fees/penatlies?

catloverdawn
catloverdawn Member Posts: 2 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?

Tagged:
· Share on Twitter

Best Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 260
    Answer ✓

    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.

    · Share on Twitter
  • catloverdawn
    catloverdawn Member Posts: 2 Newcomer
    Answer ✓

    Thank you!!

    · Share on Twitter

Categories