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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

L
Lizzie Hintz

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.

A
Anonymous

Feb 21, 2025

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. 

There is no penalty for withdrawals after age 59 1/2.  You will have to pay income tax on it. 

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