401k rollover

I rolled my 401k into an IRA in 2019. If I contribute to the IRA for last years contributions, will I be able to withdraw monies next year without penalty. I will be 65 in a couple of months.

993

Level 15

Jan 28, 2020 2:41:52 PM

Assuming you mean a Traditional IRA then since you are over age 59 1/2 there is no penalty on any distributions. You would still be subject to the normal tax on distributions.

Returning Member

Jan 31, 2020 5:36:02 AM

It is a traditional.

Thank you

Expert Alumni

Feb 1, 2020 2:16:31 PM

If you are referring to an early distribution penalty, the answer would be No.

Since you are older than age 59.5, you will be not subject to 10% from early distribution penalty. However, you will still be taxed at your normal tax bracket as part of your taxable income.

@tm0330

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401k rollover