Are there restrictions in 2017 to withdrawing funds from traditional IRA if over 64 years old and still employed other than having to pay income tax on the withdrawals?

[dbrandon]

Using funds for energy efficient home improvements.  Can I take a tax credit for the cost of improvements.  Metal roof, windows and doors in 2017?

[Hal_Al · Accepted solution]

No. There are no additional  restrictions  to withdrawing funds from traditional IRA if you are over 59-1/2 other than you will pay income tax on the withdrawals. 

The fact that you are still working means the IRA distribution is added, on top, of your other income and may push you into a higher tax bracket and/or increase your AGI to make you less eligible for other tax benefits. 

The fact that you used IRA money to pay for the energy improvements does not hamper your ability to claim an energy credit, you you otherwise qualify. Most energy credits (including Metal roof, windows and doors) expired last year and are not available for 2017 (unless congress does the last minute stuff again). See https://www.energystar.gov/about/federal_tax_credits.   https://energy.gov/energysaver/articles/these-13-home-energy-tax-credits-expire-2016

You can use this tool to see the effect https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1. I think the tool will do energy tax credits. 

[dmertz]

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.