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 Customer Support.
• 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!