Can I take a distribution from my account?
Traditional Individual Retirement Account (IRA) Distributions: You can withdraw from your IRA at any time. However, there are tax rules for each type of IRA. Please refer to the distribution guidelines included with the distribution forms for more details. Generally, you will pay a 10% early withdrawal tax penalty if you withdraw from your IRA before you are 59 ½.
Roth IRA Distributions: You can withdraw from your IRA at any time. However, there are tax rules for each type of IRA. Please refer to the distribution guidelines included with the distribution forms for more details. Generally, a qualified distribution will qualify for a tax-free distribution. A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements: it is made after the five-year period beginning with the first tax year for which the contribution was made to the Roth IRA set up for your benefit.
Exceptions to the 10% penalty for withdrawal before you turn 59 ½ include distributions:
- Made because you are disabled
- Made to a beneficiary or to your estate after your death
- One that meets the requirements for first time home buyers (up to a $10,000 lifetime limit)
- For higher education expenses
- For qualified medical expenses
- Due to a terminal illness
- For birth or adoption expenses
- Due to a qualified federal disaster relief
- For domestic abuse survivors
- Birth or Adoption