I'm 54 and hope to be able to start withdrawing from an IRA(s) at 55. I've read some articles and understand there are various restrictions to withdrawing before age 59 1/2 - three methods using "substantially equal periodic payments". I'd like to get around having to totally commit to any of those plans. I would like to know:
1. If I have more than one IRA (how would that be defined?) can I start withdrawing from one under the pre 59 l/2 age rate but another later, at 59 ½, without restriction?
2. Can I withdraw and pay the 10% penalty until 59 ½ and then withdrawn from an IRA on without further penalty?

I'm 54 and hope to be able to start withdrawing from an IRA(s) at 55. I've read some articles and understand there are various restrictions to withdrawing before age 59 1/2 - three methods using "substantially equal periodic payments". I'd like to get around having to totally commit to any of those plans. I would like to know:
1. If I have more than one IRA (how would that be defined?) can I start withdrawing from one under the pre 59 l/2 age rate but another later, at 59 ½, without restriction?
2. Can I withdraw and pay the 10% penalty until 59 ½ and then withdrawn from an IRA on without further penalty?

IRC §72(t)(2)(A)(iv) governs IRA witrhdrawals. Details can be found in Pub's 575 & 590 along with Notice 89-25. To answier yout questions: yes, these withdrawals operate on an "account" basis, not at the tax payer level.

TheBadger

Greetings, Afeldra, and welcome. You wrote:

<<I'm 54 and hope to be able to start withdrawing from an IRA(s) at 55. I've read some articles and understand there are various restrictions to withdrawing before age 59 1/2 - three methods using "substantially equal periodic payments". I'd like to get around having to totally commit to any of those plans. I would like to know:
1. If I have more than one IRA (how would that be defined?) can I start withdrawing from one under the pre 59 l/2 age rate but another later, at 59 ½, without restriction?>>

Yes, you can. If you have different custodians for the accounts, you have more than one IRA.

<<2. Can I withdraw and pay the 10% penalty until 59 ½ and then withdrawn from an IRA on without further penalty?>>

Yes, you can also do that.

Regards..Pixy

TMFPixy wrote:
Yes, you can. If you have different custodians for the accounts, you have more than one IRA.


Pixy,
I thought you could have both the SEPP withdrawal IRA and the independent IRA at the same custodian?

*Cat

*Cat writes:

<<TMFPixy wrote:
Yes, you can. If you have different custodians for the accounts, you have more than one IRA.


Pixy,
I thought you could have both the SEPP withdrawal IRA and the independent IRA at the same custodian?>>

I'm guilty as charged. It was inexact writing. A better wording is probably "...If you have different account numbers for each of your IRA."

Regards..Pixy