If you’re like most taxpayers, you probably believe this statement…
“IRA accounts lock up your money until age 59 ½, unless you’re willing to pay a 10-percent penalty to access your money.”
Not true. This is a myth.
The fact is, there are three ways you can take money from either a traditional IRA or Roth IRA. And yes. You can do this tax-free and penalty-free, for any reason, before you reach age 59 ½.
Want to find out how you can safely tap the hard-earned money sitting in your IRA?
Read my new article titled
“Three Ways to Take Money out of Your IRA at Any Age Penalty-Free”
Way #1: Use the Roth IRA escape hatch. To get a tax-free, penalty-free qualified distribution from a Roth IRA, you normally have to have had the account open for at least five years and be over 59 ½. All other distributions are non-qualified and you’ll have to pay tax and the 10-percent penalty on those distributions. But there is a huge escape technique you can use to avoid paying this penalty. We’ll tell you what it is when you read the full article.
Way #2: Reduce your traditional IRA balance to its “basis.” If you made nondeductible contributions to a traditional IRA, you have “basis” in all your traditional IRAs. Any distributions from your traditional IRAs will have a pro-rata amount of your basis. Use this taxable-amount-only rule to reduce your traditional IRA balance to its basis and then liquidate it tax- and penalty-free. You’ll get all the details when you read the full article.
Way #3: Use substantially equal periodic payments. There’s a little-known exception to the 10-percent penalty called “the substantially equal periodic payment exception.” It allows you to create a stream of penalty-free traditional IRA distributions starting at any age for any reason. We’ll tell you the whole story when you read the full article.