How Do You Withdraw From An IRA?
Individual retirement accounts (IRAs) are the only nest egg for the future for many people. One of the ways the government ensures IRA investments stay untouched is by charging a penalty for early withdrawal. There are some circumstances, however, that allow withdrawal without penalties. Contact your funds manager. Whether it’s an employer-sponsored plan or a plan set up through a financial adviser, you can learn the details of your IRA through the plan’s manager or representative. This person will inform you of the 10 percent penalty for early withdrawal on any IRA investment. Early withdrawal constitutes any withdrawal that was made before the investor turns 59 1/2. Consider the reason for the withdrawal. There are several circumstances under which a penalty will not apply. These include tuition to an IRS-approved institution. The school may be private, public or nonprofit, as long as it meets federal student aid program requirements. An investor may also withdraw penalty-free from a
