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Level 2

Question

IRA/401K Withdrawal

Forum|Forum|6 years ago
March 20, 2020
3 replies
16 views

I withdrew money from my IRA in 2019. I did not have taxes taken since I didn't know what my tax liability was going to be. I am 62 years old. Was there a penalty because I took the monies at 62 years old?

IRA

Level 15

There is no penalty for taking a distribution from an IRA if you are age 59 1/2 or older. The distribution may be subject to ordinary income tax, but it will not be assessed the 10% penalty for early withdrawal.

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0816Author

Level 2

You noted that the distribution may be subject to ordinary income tax. Why would it not be subject to ordinary income tax?

Thank you

Level 15

Your distribution would not be taxable up to the amount of basis you have in your IRA. Basis in an IRA is the non-deductible contributions you made.

Please read this TurboTax article about Traditional IRA basis.

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