Age 59.5 TImed Withdrawal

Submitted by Brian Kuhn on Wed, 2020-04-22 16:45

In a normal tax year where the IRS hasn’t waived the 10%, does the IRA owner taking a withdrawal in the year they turn 59.5 need to wait until after the day they turn 59.5 or does the 10% penalty go away the start of that calendar year?



Submitted by Alan - IRA critic on Wed, 2020-04-22 18:09

  • The 10% penalty applies until the actual day the IRA owner reaches 59.5 unless the person qualifies for a penalty exception other than age.
  • For 2020, the penalty is waived for other than the above taxpayers only if the IRA owner qualifies for a corona virus related distribution according to specific guidelines in the CARES Act. This does not apply to everyone, just those who qualify. 

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