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When can withdrawals be taken without penalty?

Traditional IRA

Withdraw penalty free without incurring 10% IRS premature-distribution penalty:

  • Upon reaching age 59 1/2
  • Qualified educational expenses
  • First time home purchase (lifetime maximum of $10,000 per individual)
  • Disability
  • Catastrophic medical expenses
  • Payment to beneficiaries upon the owner’s death
  • Payment of health insurance premiums while unemployed for 12 weeks or longer
  • Withdrawal of earnings and deductible contributions still results in taxable income.

Roth IRA

  • Regular contributions can be withdrawn tax and penalty free anytime
  • Earnings can be withdrawn penalty free for any of the following qualified reasons:
    • Age 59 1/2
    • Disability
    • Death
    • For first time home purchase (lifetime maximum of $10,000 per owner)
    • Education Expenses
    • Large medical expense and health insurance premium while unemployed

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