Tax guide

How do I take funds out of a traditional IRA without a penalty?

The IRS states that you must be at least 59½ and five years from when the first contributions were made in order to take a qualified distribution from an IRA. The penalty for an early distribution is 10%.

An IRA is set up between an individual and their bank instead of through an employer. You can usually deduct contributions to a traditional IRA, but all withdrawals are taxable.

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