Generally speaking, a distribution from an IRA or a qualified retirement plan is not subject to an early-distribution penalty if the account owner is age 59½ or older at the time of the distribution. Keep in mind, though, that certain investments that can be held in an IRA or qualified retirement plan such as CDs and annuities can have their own surrender changes if the investment's holding period has not been met.
The exception to the general case would be where the account owner takes a plan-busting distribution from an IRA or a qualified retirement plan that is being distributed under a SEPP plan (also called a 72(t) plan), a SEPP plan that has not completed the minimum-required 5 years. However, someone age 64 would be very unlikely to be receiving distributions under a SEPP plan since the plan would have been established before age 59½, would have met the age requirement and likely would have also met the 5-year requirement.
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