age 59 1/2 and penalty-free IRA withdrawals
Can penalty-free distributions from IRAs begin on January 1 of the year you turn 59 1/2 or do you have to wait until the acutal day that you turn 59 1/2 to avoid the penalty? Thanks
Can penalty-free distributions from IRAs begin on January 1 of the year you turn 59 1/2 or do you have to wait until the acutal day that you turn 59 1/2 to avoid the penalty? Thanks
Permalink Submitted by Alan Spross on Wed, 2008-06-04 19:17
The actual day you turn 59.5, which is 6 months after your 59th birthday.
Of course, there are other exceptions to the penalty as well, such as higher education costs, disability, first home purchase up to 10,000, substantial medical expenses, and distributions taken as substantially equal periodic payments. There is also no penalty for distributions from an inherited IRA.