IRA withdrawal fees/penatlies?

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?
Best Answers
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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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Thank you!!
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Answers
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I am not being prompted in your software to avoid the early withdrawal penalty as you suggest. It only asks if the funds were rolled over into another qualified account within 60 days or converted into a Roth. How can we report that the funds were used for college tuition?
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Hi WrenJD,
There are some steps you must be missing. After you enter the 1099-R and are on the "Your Retirement Income" page, press Continue. After a couple of pages, you will come to the "Do any of these 10% penalty exceptions apply?" page. Check the exception that applies and enter the amount.
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