Mr. Giuseppe Ryan PhD
Nov 27, 2024
Can I take out my Ira savings under 5,000?
Due to the pandemic, can I withdraw my remaining balance of under $5,000 from my Fidelity IRA? I understand that after turning 71, I am required to take distributions in the form of a check sent to me monthly or yearly to avoid high penalties for withdrawing the full amount. How does this apply to my situation?
3 Answers
Feb 12, 2025
No, that was allowed in 2020 but no such rule has been passed for 2021.
If you’re under 59.5 and it’s a Roth account you can take out as much as you contributed, but not the investment earnings.
If you’re over 59.5 and the account has been open at least 5 years, you can withdraw all of it.
If you’re over 71 you MUST start withdrawing.
Your question doesn’t make a lot of sense.
In 2020, there was no early withdrawals penalty due to the CARES Act.
Anyone over age 59.5, can withdraw without a penalty at any time.
When you are 72, you are required to take minimum required distributions (RMD). For a IRA valued at $5000, this would be about $300 you are required to take out.
Any distributions increase your taxable income. $250 is not going to have much baring on your taxes.
Amy’s answer is related to ROTH IRAs, not traditional IRAs.
Jan 27, 2025
There is no penalty for withdrawals after age 59 1/2. You will have to pay income tax on it.
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