Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

The Two Ways You Can Withdraw Money from Your IRA

20 Sept 2024 · 1 min

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Craig Wear, CFP® explains that there are two basic ways to withdraw money from an IRA: discretionary distributions (you choose to take money and, if age 59½ or older, can do so without penalties—only taxes apply) and required minimum distributions (forced withdrawals that must begin by April 1 of the year you turn, for most people, age 73). The clip contrasts voluntary withdrawals versus mandated RMDs and highlights the key age thresholds and timing.

Questions this video answers

59½ years old.

By April 1st of the year you turn age 73.

Chapters

For everybody who may be listening. This from different backgrounds, different financial understandings. You can withdraw money from your IRA in two basic, different buckets, Right. They can be discretionary distributions, which happen when you just decide, I'm going to get some money out. And if you're 59 and a half years old or older, you could take whatever you want, just pay the taxes for it. No. No penalties, any of that kind of stuff. There's also not only discretionary distributions, but forced distributions is what I call it, which are required minimum distributions. So required minimum distributions from these retirement accounts must begin by April 1st of the year, which you turn for most people now age 73.