dating a young divorced guy - Tax consequences of liquidating ira
You can withdraw your money from an IRA any time you’d like, but you just better be aware of the tax and penalty ramifications.
That’s fine, but just know that good ol’ Uncle Sam will uppercut you with a 50% penalty on the amount that should’ve been distributed along with the normal taxes due.
They want to make sure they get their tax revenue some how.
Reaching the magic age of 59 1/2 is one retirement milestone you should look forward to.
Once you reach this age, you can begin to take your IRA distributions penalty free!
At age 70 1/2 you will be required to take a minimum distribution ( also known as RMD, which uses a formula set up by the IRS to determine the amount) and pay taxes on those withdrawals.