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URL:  http://boards.fool.com/59-and-a-half-30178449.aspx

Subject:  59 and a half Date:  7/31/2012  12:46 PM
Author:  gurdison Number:  116473 of 121182

Can you define exactly what this means in terms of the 10% early withdrawal penalty for IRAs?

I know what it means in English, but in tax speak (written by well regarded members of congress) it can have all kinds of slightly different meanings. I know that one is no longer penalized once they reach that number. But before making any moves, it is important to make sure there are no misunderstandings on what should normally be a really easy concept.

So lets start simply. A person turns 59 on say April 10. That would mean that they turn 59 1/2 six months later on October 10. In order to avoid the 10% penalty, what exact date could the earliest IRA withdrawal occur on?

Is it:

October 10 (the day one turns 59 1/2)
October 11 (the first full day after one turns 59 1/2)
November 1 (the first of the month after one turns 59 1/2)
January 1 (the first day of the first quarter after one turns 59 1/2)
Some other date that I am not even thinking of as a possibility.

I am hoping that the answer is indeed simple and not subject to wide interpretations. Thank you in advance.


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