5 Things to Know About Withdrawing Money From a Traditional IRA

INDIVIDUAL RETIREMENT accounts, commonly known as IRAs, are retirement fund staples for many people. Traditional IRAs let workers take a tax deduction when they deposit money into their account and then pay taxes when they make a withdrawal.

It sounds straightforward, but exactly when you withdraw that money can make a big difference in how much you end up paying the government in taxes and fees.

Here are five things you should know before pulling money from your traditional IRA:


  • You could pay a penalty if you withdraw money too early.

  • You could miss a window for tax savings if you withdraw too late.

  • You are required to make minimum withdrawals from traditional IRAs once you reach age 72.

  • Your IRA withdrawals could affect your Medicare premiums.

  • You may be able to avoid an early withdraw penalty in certain circumstances.


Read More: https://money.usnews.com/money/retirement/articles/what-to-know-about-withdrawing-money-from-a-traditional-ira

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