To withdraw money from their individual retirement accounts (IRAs), account holders should determine their withdrawal eligibility, contact the appropriate financial institution and complete all applicable forms, notes IRS.gov. People who do not meet eligibility requirements may be required to pay additional fees and penalties for early withdrawals.
Use this process in order to withdraw money from an IRA account:
- Determine eligibility
- Contact the financial institution
- Complete applicable forms
Determine whether it is possible to withdraw money from an IRA. Additional fees and higher tax rates may be added if money is withdrawn before the account holder turns 59-1/2 years of age, states IRS.gov. Avoid these penalties if using the funds for approved circumstances, such as purchasing a first home, paying for eligible education expenses or paying for eligible medical expenses, among other reasons. It is possible to withdraw money at any time, but understand an exception qualification does not exist; the withdrawal will be subject to penalties and fees. People between 59-1/2 and 70-1/2 years of age can begin withdrawing funds if they desire, and people older than age 70-1/2 are required to begin withdrawing their funds.
Contact the financial institution that holds the IRA assets to withdraw funds after determining eligibility or applicable fees and penalties.
Regardless of age, complete Form 1040, and possibly also Form 5329. Contact the IRS or a tax professional with questions.