What are the rules for withdrawing from an IRA?
The rules for withdrawing money from an Individual Retirement Account (IRA) are similar to those guiding withdrawals from many other retirement plans. Most IRA investors don t start making withdrawals until they reach 59 1/2. If you withdraw money earlier, you ll get hit with a 10 percent penalty unless you qualify for a rare exception. Withdrawals are taxed at your individual tax rate, which will probably be lower after you retire than when you are working.
