Traditional/Rollover IRA
Generally, you cannot withdraw funds without penalty before age 59½ (exceptions apply).
After age 59½, withdrawals are penalty-free but taxed as ordinary income.
You must begin taking withdrawals, or Required Minimum Distributions (RMDs), at age 73.
Roth IRA
Qualified withdrawals after age 59½ (and at least 5 years after your first Roth contribution) are tax-free.
Early withdrawals of earnings may incur taxes and penalties.
What is a Required Minimum Distribution (RMD)?
For Traditional IRAs (and Rollover IRAs), you must start taking distributions by a certain age (73 for individuals turning 73 in 2023 or later, though rules vary).
Roth IRAs do not have RMDs during the owner’s lifetime.
How can I make a distribution from my IRA?
You can initiate a distribution in your account portal or by contacting us at support@tradeup.com or via Live Chat.
Depending on your age and IRA type, taxes or penalties may apply.
Can I make an early withdrawal from my account?
Yes, but you may be subject to a 10% early withdrawal penalty plus any applicable taxes unless you qualify for an exception.
Please consult a tax professional or refer to IRS Publication 590 for more details.
Still got questions? Contact TradeUP Customer Support by email at support@tradeup.com or reach out to us on Live Chat!