Rules for liquidating an ira datingforall net

But be sure to review the exceptions to the 10 percent penalty (as detailed below) since your specific situation and use for the money may exempt you from being subject to the penalty.

rules for liquidating an ira-7

If you are the owner of a Traditional IRA or 401k you are required to begin making minimum withdrawals (distributions) from your IRA at age 70-1/2 (70 if your birthday falls on or before June 1st, 71 if your birthday falls on or after July 1st).Since you are under the age of 59 and a half, you are likely subject to a 10 percent IRS penalty for early withdrawal of the Simplified Employee Pension (SEP-IRA).This 10 percent penalty is in addition to the ordinary income tax you would normally pay if you withdrew from your SEP-IRA after you passed the aforementioned age threshold.This online IRA Withdrawal Calculator will attempt to forecast your future required withdrawals if you are an IRA owner age 70-1/2 or older.If you are age 70-1/2 or older, but would just like to calculate an estimate of the current year's required minimum distribution, see the IRA RMD Calculator.One strategy is the one you indicated in your question.

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