Individual retirement accounts (IRAs) are one of the most common forms of retirement accounts, and they are responsible for one-third of assets claimed by retirees. You can start to withdraw distributions that are penalty-free at age 59.5. Once you reach 70.5 years of age, RMDs must be withdrawn from your IRA by Dec. 31 each year. If you fail to meet this criteria, then you may be required to pay a 50% excise fee on the amount that was supposed to be withdrawn.
- In the year of 2018, IRAs were held by one-third of retirees in the United States.
- Once you reach 59.5 years of age, you can start withdrawing tax-free distributions from your traditional IRA account.
- You must start taking RMDs out of your IRA account once you reach the age of 70.5.
“Know the rules for how to withdraw funds from them for your retirement.”