An IRA withdrawal allows you to take money from your retirement account, subject to penalties if done before age 59 ½. Traditional IRA withdrawals are taxed, while Roth IRA withdrawals are tax-free after age 59 ½. Mandatory distributions from a traditional IRA now begin at age 73, increasing to 75 in 2033.

Roth IRAs offer tax-free withdrawals after age 59 ½, with contributions being withdrawn first, followed by rollover amounts and earnings. Unlike traditional IRAs, Roth IRAs have no mandatory withdrawals during the original account holder’s lifetime, making them useful for wealth transfer.

Exceptions to the 10% early withdrawal penalty for IRAs include expenses for child birth or adoption, disability, disaster losses, domestic violence, and first-time home buying. Consult a tax professional for details. A 60-day IRA rollover allows tax-free transfers between retirement accounts, but failing to meet the deadline results in taxes and penalties.

Borrowing from an IRA is prohibited under IRS rules, as it loses its tax-advantaged status. However, a 60-day IRA rollover can mimic a loan if funds are redeposited in time. Income taxes are owed on traditional IRA withdrawals, while Roth IRA taxes can be avoided by following specific guidelines.

Withdrawals from traditional or Roth IRAs may incur taxes and penalties, but exceptions exist for certain circumstances like medical expenses or disaster losses. Plan carefully and consult a financial advisor for guidance on navigating IRA withdrawals.

Read more at Yahoo Finance: Withdrawal rules for Roth and traditional IRAs