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Retirement

IRA rules for RMDs & other withdrawals

While you can take money from your IRA anytime, you may bypass penalties and extra taxes if you don't do it too early.
4 minute read

Guidelines for withdrawals

Withdrawals before age 59½

Withdrawals of Roth IRA contributions are always both tax-free and penalty-free. But if you're under age 59½ and your withdrawal dips into your earnings—in other words, if you withdraw more than you've contributed in total—you could be subject to both taxes and penalties on the earnings portion of the withdrawal.

Withdrawals of your traditional IRA contributions before age 59½ will result in regular income tax on the taxable amount of your withdrawal plus a 10% federal penalty tax —generally the entire amount—unless you qualify for an exception.

Qualifying exceptions

Roth IRAs

Withdrawals of earnings from a Roth IRA before age 59½ may not be subject to the 10% federal penalty tax (or any other taxes) if the IRA has been held for at least 5 years and one of the following applies:

  • The IRA owner is totally and permanently disabled.
  • The IRA owner is using the withdrawal for a first-time home purchase ($10,000 lifetime limit).
  • The withdrawal is made to a beneficiary or the IRA owner's estate after the owner's death.

Withdrawals of contributions are always tax-free and penalty-free.
 

Traditional IRAs

Withdrawals of both contributions and earnings received from a traditional IRA before age 59½ may not be subject to the 10% federal penalty tax if they occur because:

  • The IRA owner is totally and permanently disabled.
  • The withdrawal is made to a beneficiary or the IRA owner's estate after the owner's death.
  • The withdrawal is made to a reservist who was ordered or called to active duty after September 11, 2001, for more than 179 days.

Or if they're to be used for:

  • A first-time home purchase ($10,000 lifetime limit).
  • Postsecondary education expenses.
  • Substantially equal periodic payments taken under IRS guidelines.
  • Certain unreimbursed medical expenses.
  • An IRS levy on the IRA.
  • Health insurance premiums (after you've received at least 12 consecutive weeks of unemployment compensation).
  • Birth or adoption of a child (up to $5,000 per child distributed within 1 year of birth or adoption).
  • The withdrawal is a coronavirus-related distribution to a qualified individual (made on or after January 1, 2020 and before December 31, 2020).

These exceptions also apply to any taxable amount of Roth IRA withdrawals.

For additional information about Roth and traditional IRA withdrawal rules, consult:

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Withdrawals between ages 59½ & 731

Restrictions relax at age 59½, and you can withdraw from a Roth or traditional IRA penalty-free.

In addition, with a Roth IRA, you'll pay no taxes on withdrawals, provided your account has been open for at least 5 years.2

With a traditional IRA, you'll owe taxes on the withdrawals of all earnings and any contributions you originally deducted from your taxes.

But remember: Turning 59½ doesn't mean you have to start withdrawing your money.

 

Withdrawals at age 731

If you own a Roth IRA, there's no mandatory withdrawal at any age.

But if you own a traditional IRA, you must take your first required minimum distribution (RMD) by April 1 of the year following the year you reach RMD age. For each subsequent year, you must take your RMD by December 31. The RMD amount is based on your life expectancy and the prior year-end balance of your retirement account.

Learn about Vanguard's free RMD Service

Required minimum distributions (RMDs)

Under federal tax law, most owners of IRAs (except Roth IRAs) must withdraw part of their tax-deferred savings each year, starting at age 73*. If you withdraw less than your RMD, you may owe a 50% penalty tax on the difference. RMDs are intended to ensure that the assets in these types of accounts are eventually subject to taxation.

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Withdrawals from an inherited IRA

In general, nonspouse beneficiaries that inherit an IRA from someone that passed away in 2020 or later may be required to withdraw the entire account balance within 10 years. Spousal beneficiaries and certain eligible nonspouse beneficiaries may be permitted to take RMDs over their life expectancy.

You won't pay taxes on withdrawals from an inherited Roth IRA if the original account owner held the IRA for at least 5 years.

But you will pay taxes on withdrawals from an inherited traditional IRA.

Learn more about inherited IRAs

Learn more about RMD rules for inherited IRAs

A word about loans from your IRA

Neither Roth nor traditional IRAs allow you to take loans, but you can access money from an IRA for a 60-day period through a "tax-free rollover" if you put the money back into the same or a different IRA within 60 days. You're limited to only one such "rollover" within a 12-month period, regardless of the number of IRAs you own. If you withhold taxes from the distribution from your traditional IRA, you would have to use other funds to roll over the full amount of the distribution.

Learn more about "tax-free rollovers"

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1Due to changes to federal law that took effect on January 1, 2023, the age at which you must begin taking RMDs differs depending on when you were born. If you reached age 72 on or before December 31, 2022, you were already required to take your RMD and must continue satisfying that requirement. However, if you had not yet reached age 72 by December 31, 2022, you must take your first RMD from your traditional IRA by April 1 of the year after you reached age 73.

2The 5-year holding period for Roth IRAs starts on the earlier of: (1) the date you first contributed directly to the IRA, (2) the date you rolled over a Roth 401(k) or Roth 403(b) to the Roth IRA, or (3) the date you converted a traditional IRA to the Roth IRA. If you're under age 59½ and you have one Roth IRA that holds proceeds from multiple conversions, you're required to keep track of the 5-year holding period for each conversion separately.
 

You may wish to consult a tax advisor about your situation.

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