Summary of IRA Distributions

Traditional individual retirement accounts are a terrific way to save for retirement and save tax dollars too. However, there are strings attached. Contributions made to an IRA must stay in the IRA until you reach 59½ and must start to be withdrawn by the time you are 73. Failing to follow these rules might result in taxes and penalties unless you meet the requirements of certain exceptions.

You have several alternatives available for taking distributions from your IRA accounts. Generally, you can take distributions any way you want between the ages of 59½ until 73. However, at 73 and older you must make annual required minimum distributions to avoid running afoul of the IRS. The method you use to take your ordinary distributions is optional as long as it meets the IRS requirements and your financial plans.