An individual retirement account (IRA) is set up to assist you with saving money for your golden years. The Internal Revenue Service (IRS) permits you to begin making withdrawals from your account at the age of 59 and ½. Nevertheless, you can take withdrawals prior to this if you are willing to pay a penalty. For early distributions, the IRS makes you pay a 10% penalty fee. Depending on the amount you are withdrawing, this can be a hefty penalty. However, you are exempt from this in some instances.
In order to withdraw from your IRA free of a penalty, you must meet one of the below exceptions.
For some of these exceptions, certain qualifications or rules will apply. For example, when you purchase your first home using money from your IRA, there is a lifetime distribution limit of $10,000. The funds must also be used within 120 days after you have withdrawn them. Additionally, the funds must only be used on the first home and the buyer is the IRA account owner, their spouse or an ancestor.
If you hold an account with a reputable firm, like Royal Legal Solutions, you have already made your first great investment choice. By allowing us to help you with your IRA, you can take advantage of any of our great services. Our professionals want the best for you and your account. We understand IRS, state and federal regulations that may apply to your account. By using Royal Legal Solutions to start your retirement account, you can feel secure in knowing we will help keep you from violating these regulations. Contact us today to find out more about the services Royal Legal Solutions provides.
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