BANKING AFFAIRS

Detailed explanation-1: -If you’re at least age 59½ and your Roth IRA has been open for at least five years, you can withdraw money tax-and penalty-free. See Roth IRA withdrawal rules. With a Roth IRA, there are no required distributions as there are with a Traditional IRA.

Detailed explanation-2: -You can take distributions from your IRA (including your SEP-IRA or SIMPLE-IRA) at any time. There is no need to show a hardship to take a distribution. However, your distribution will be includible in your taxable income and it may be subject to a 10% additional tax if you’re under age 59 1/2.

Detailed explanation-3: -Additional Helpful Information. An individual attains age 59½ as of six calendar months after the 59th anniversary of the individual’s birth date. For example, if an individual’s date of birth was June 30, 1950, the 59th anniversary of such individual’s birth is June 30, 2009.

Detailed explanation-4: -Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty. There are exceptions to the 10 percent penalty, such as using IRA funds to pay your medical insurance premium after a job loss.

Detailed explanation-5: -You may withdraw as much money from the account as you’d like once you reach this age. When you take a qualified distribution from a 401(k) after the age of 59 1/2, you are taxed at your ordinary income tax rate. You are required to begin taking qualified distributions from your 401(k) after the age of 72.