10 Ways to Tap Your IRA Early Without Penalty

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i want to remove the money because i have years without working i have a traditional IRA plus and have a lot of medical problems, would i be able to remove the money with out penalties or taxes?

rosaniela of FL 10:24AM March 27, 2013

can my brother who has been unemployed now working but 3 months behind on his mortgage have his wife withdraw form her school retirment fund enough money to pay the mortgage payments with out paying a penalty? He will be 60 in Feb and she is going to be 59.

Pam Hansen of WY 8:51PM January 27, 2013

I have a college plus loan, can I pay it off with money from my IRA and not pay a penalty?

Thomas Sullivan of WA 3:25AM December 29, 2012

I am a widow. I had to tap my IRA due to the need to sell my home at a loss before the present interest only mortage ended causing a return to the original mortgage payment. As a widow making much less money I would not be able to make the higher payment. Can I avoid a penalty or interest on any money spent to close on the sale of my home?

Lavon Darbro of IL 1:04PM December 26, 2012

Can one withdraw from IRA opposed to 401k to start a business?

rebecca of GA 8:06PM November 15, 2012

aa! her comment disappeared!! sorry now nobody know what I was freakin talking about... uhh

jim of CA 7:18PM October 22, 2012

I was wondering what laurie, the 1st question was wondering? I think... the answer is ... 10% penalty... 20% fed and state taxed as income... but does fed tax again? Probably, but for gods sake... lets hope not...

jim of CA 7:15PM October 22, 2012

If you are on unemployment for over 12 weeks, and you are 72 years old, can you use your IRA to help pay expenses of living?

CW of CA 2:47PM June 25, 2012

You're missing an instance where one can withdraw funds prior to 59 and ahalf without incurring a penalty.
From the IRS Code:
Definition. A distribution you receive is a qualified reservist distribution if the following requirements are met.
You were ordered or called to active duty after September 11, 2001.
You were ordered or called to active duty for a period of more than 179 days or for an indefinite period because you are a member of a reserve component.
The distribution is from an IRA or from amounts attributable to elective deferrals under a section 401(k) or 403(b) plan or a similar arrangement.
The distribution was made no earlier than the date of the order or call to active duty and no later than the close of the active duty period.
Reserve component. The term “reserve component” means the:
Army National Guard of the United States,
Army Reserve,
Naval Reserve,
Marine Corps Reserve,
Air National Guard of the United States,
Air Force Reserve,
Coast Guard Reserve, or
Reserve Corps of the Public Health Service.

Terry of VA 10:41AM June 10, 2012

I am in a situation where I have recently left my employer after 12 years. My 401K is small and though I know very well the importance of saving for retirement I have a serious need to pay off a second interest only loan that is required to be paid in full within 5 years. After the required 20% is withheld for Federal taxes I will have just enough to take care of this loan, therefore I will no longer be throwing money at something that will never change (4 1/2 yrs paying a loan that will never change and still will need to come up with $20,000 when the loan comes due), with the exception that the lean holder will probably be able to take my home because I will never have $20,000 to pay a loan in full unless I use my current 401K account balance which is currently at $26,000. I am also aware of the fact that when I file 2012 tax information this amount will add to my gross income and be subject to state tax. Chances are I am not going to make the salary I recently lost this year. From what I am seeing I may be collecting unemployment the majority of this year. Of course I have both state and federal taxes taken from my unemployment benefits but what will the state (Colorado) tax bill look like and will there be additional federal tax owed on top of the 20% that is taken from the start?

Laurie of CO 1:29PM February 28, 2012