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 Can I withdraw and pay the 10% penalty until 59 ½ and then withdrawn from an IRA on without further penalty?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 Can I withdraw and pay the 10% penalty until 59 ½ and then withdrawn from an IRA on without further penalty?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

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 Can I withdraw and pay the 10% penalty until 59 ½ and then withdrawn from an IRA on without further penalty?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