Series 6: 3.3.1.2. Withdrawing From A Traditional IRA

3.3.1.2. Withdrawing from a Traditional IRA

Traditional IRAs, including those that are part of SEP or SIMPLE plans, have required minimum distributions (RMDs). These are similar to the RMDs for defined contribution plans that we discussed previously. When the traditional IRA's owner turns 72 (increasing to 73 in 2023), they must begin withdrawing a certain minimum amount from the IRA or face tax penalties.

Most individuals will make pre-tax contributions to their traditional IRAs. Any after-tax contributions can be withdrawn tax-free, but the individual must show evidence that taxes were paid on these contributions. While individuals can withdraw funds at any time from their accounts, if they make withdrawals before the age of 59 1/2, they will be taxed on both their pre-tax contrib