IRA as a place holder

Submitted by Marty Williams on Mon, 2014-10-20 17:40

This may be a silly question, but I appreciate your help. I have a left a career where I have a defined benefit plan. I want to be able to use this money to buy our retirement home. I am not yet 59.5. I know that I will pay the standard tax when I do withdraw it. And I know about the pre 59.5 penalty. My question is, can I go ahead and roll that into an IRA now and in a few months be able to take these funds out when I turn 59.5? Is there a time limit, is there a penalty beyond the taxes? Any help would be appreciated.
Thanks



Submitted by mk foss on Mon, 2014-10-20 21:25

There is no penalty if you withdraw funds from your IRA after you reach age 59.5. It doesn’t matter how long a time or how short a period the funds have been in the IRA. 

Submitted by Marty Williams on Tue, 2014-10-21 19:01

thanks

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