IRA distributions
- Income tax will apply to distributions that you have to include in gross income.
- You may owe a 10% additional tax on early or pre-59½ taxable distributions.
- The exceptions to the 10% additional tax include distributions after reaching age 59½, death, disability, eligible medical expenses, certain unemployed individuals’ health insurance premiums, qualified first-time homebuyer ($10,000 lifetime maximum), qualified higher education expenses, Substantially Equal Periodic Payments (SEPP), Roth conversion, qualified reservist distribution, birth or adoption expenses (up to $5,000), or IRS levy.
Source: irs.gov. Wells Fargo Advisors has provided this link for your convenience but does not control or endorse the website and is not responsible for the products, services, content, links, privacy policy, or security policy of this website.
- The exceptions to the 10% additional tax include distributions after reaching age 59½, death, disability, eligible medical expenses, certain unemployed individuals’ health insurance premiums, qualified first-time homebuyer ($10,000 lifetime maximum), qualified higher education expenses, Substantially Equal Periodic Payments (SEPP), Roth conversion, qualified reservist distribution, birth or adoption expenses (up to $5,000), or IRS levy.
Required Minimum Distributions (RMDs) for Traditional, SEP, and SIMPLE IRAs begin by your Required Beginning Date (RBD), which is generally April 1 following the year you turn age 73.
Wells Fargo Advisors is not a legal or tax advisor.