- Self-Directed Accounts
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To receive funds from your self-directed IRA without penalty, you must reach the age of 59 ½ (the Roth IRA also requires that the account has been open for at least five years).
Traditional IRA, SEP, SIMPLE, and Solo 401(k) account holders must begin taking required minimum distributions (RMD) from their accounts beginning April 1 of the following year after reaching age 72.
RMD is calculated using a special formula relating to life expectancy; please consult with IRS Publication 590 and/or a tax consultant. RMDs are calculated for each applicable account. If you have multiple accounts with RMDs, you’re not required to take a withdrawal from each account, but you should take into account your cumulative total required distribution when taking your distribution(s).
You can generally withdraw funds from a Traditional or Roth IRA without penalty at any time after you have attained the age of 59½. If you decided to withdraw money from your Traditional or Roth IRA account prior to reaching age 59½ you will be subject to a 10-percent early distribution penalty tax (with the Roth IRA, you can withdraw any contribution as long as it has been in the account for five years).
Yes, there are several exceptions to the 10% early distribution penalty tax. Among the exceptions recognized under the Internal Revenue Code are the distributions due to the following events:
For additional information regarding IRA withdrawal rules or the exceptions to the early distribution rules, please see IRS Publication 590.
Schedule a one-on-one session with an expert alternative investment counselor. We’re here to answer any questions, help guide you through the process, and provide more detailed information and education specific to your journey.
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