Investors withdrawing from an individual retirement account (IRA) before they reach the age of 59 1/2 will have to file a 1040 form showing the withdrawal and accepting an additional tax burden for early withdrawal. This tax burden cannot be deducted and, beginning at age 70, there are required yearly withdrawals necessary to keep the account in good standing.
There are a number of complex regulations surrounding withdrawal from an IRA ahead of retirement. Most situations, even court-ordered withdrawals to meet mandated expenses like alimony, place the burden of penalty payments and taxation on the account holder. Even charitable donations made via withdrawals are subject to early access penalties.
There is a list of exceptions to the 10 percent withdrawal tax attendant to early withdrawals from an IRA. These exceptions include death, disability, mandated payment under qualified circumstances, IRS levies, unemployed health insurance premiums and unreimbursed medical expenses.
Distribution must be pursued through the organization charged with maintenance of the IRA in question. The account owner may query the organization to request a check or transfer under any circumstances, but must accept the charges and subsequent tax burdens which such transfers may incur during the process of disbursement and the filing of 1040 forms.