Age 59.5 Example
Finding conflicting info on age 59.5 exact age . Client turned 59 on 1/2/25, in order to not have the 10% early withdrawal penalty apply would the distribution age need to be 6/2/25, 6/3/25 or 7/2/25.
I realize every Custodian may approach slightly different but what is IRS rule on date of allowed penalty free withdrawal using the DOB supplied above?
Permalink Submitted by Alan - IRA critic on Fri, 2025-04-25 12:41
It is generally assumed that a taxpayer reaches 59.5 exactly 6 months after the 59th birthday, which would be 7/2/25.
The IRS never defined this for age 59.5 but did so for age 70.5 back when that was the RMD age so it is assumed that 59.5 would be treated in the same manner. That said, it would be prudent to add a couple days as a safety margin.