Age 59 1/2 withdrawals
Just confirming.
If an IRA owner takes a distribution prior to the actual day/year they turn age 59 1/2 there is a penalty, correct?
It’s not the year in which they turn age 59 1/2.
For example, say a person turns age 59 on January 1 2014, they would have to wait until July 1 2014 before taking a distribution without penalty, correct?
Thanks for your help.
Permalink Submitted by Alan - IRA critic on Tue, 2014-01-21 20:45
Yes, that is correct. The 59.5 penalty waiver begins on the actual day that the IRA owner reaches 59.5. But the person might qualify for a different penalty exception prior to 59.5.