Say I decide to retire at age 53 and withdraw at the earliest date I can from my traditional IRA, which is 55. I do not have a W-2 that year, no taxable wages. Then do I not need to pay money when I withdraw from my traditional IRA (since no income taxes that year)?
You'll need to sign in or create an account to connect with an expert.
Your distribution would be subject to at least the 10% early-distribution penalty. Whether or not the distribution would be subject to income tax would depend on whether the distribution (plus any other taxable income) exceeded your standard deduction or itemized deduction.
The earliest age that you can withdraw from a traditional IRA without penalty (unless you have another penalty exception) is age 59½. The age-55 exception only applies to distributions from qualified retirement plans like a 401(k) and only if you separate from service in or after the year you reach age 55.
If you are willing to pay the tax and, prior to age 59½, the penalty, you can withdraw from a traditional IRA whenever you want. For a qualified retirement plan, if you have separated from service with the company you can withdraw from the plan whenever you want and pay the tax and penalty.
Your distribution would be subject to at least the 10% early-distribution penalty. Whether or not the distribution would be subject to income tax would depend on whether the distribution (plus any other taxable income) exceeded your standard deduction or itemized deduction.
The earliest age that you can withdraw from a traditional IRA without penalty (unless you have another penalty exception) is age 59½. The age-55 exception only applies to distributions from qualified retirement plans like a 401(k) and only if you separate from service in or after the year you reach age 55.
If you are willing to pay the tax and, prior to age 59½, the penalty, you can withdraw from a traditional IRA whenever you want. For a qualified retirement plan, if you have separated from service with the company you can withdraw from the plan whenever you want and pay the tax and penalty.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
air1erb
Returning Member
chinths
New Member
coronelenergy
New Member
jlf_spain
Returning Member
mitchden1
Level 3
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.