Hell of a thing happened today.

[billt]

I think your IRA should be available at 60 without penalty instead of 65.

If you have money invested in a personal IRA it is avaliable to you without penalty at age 59 1/2. If you do withdraw it after that age is reached, you will still be required to pay any and all applicable income tax on it. It will basically be added to your overall income, (W-2).  Bill T.

[billt]

When you get into your 50's you can use this to save substantial amounts on your income tax. For example Melanie and I file jointly every year. Back when we turned 50 we started moving money at the end of every year into each of our personal IRA's. The maximum yearly contribution now for people over 50 is above $6,000.00. That equates to $12,000.00 every year I can directly deduct from my, (our), W-2. If you fall into say a 20% tax bracket it comes to an extra $2,400.00 each year.

Now here is where it gets good. We simply take that extra $2,400.00 and use it the following year to keep the financial snowball rolling our way. The hidden beauty is all we are in fact doing is moving money from one account into another. All legal as per outlined by the Federal IRA tax codes. I'll turn 58 in November which means the money will only be tied up for another year and a half. If something should happen after that time, the money is avaliable without penalty. All I would have to do is include it on my, (our), yearly tax return as taxable income. The government doesn't give you many breaks tax wise. It pays to take advantage whenever and wherever you possibly can.  Bill T.

[GUNS-R-US]

If you have money invested in a personal IRA it is avaliable to you without penalty at age 59 1/2. If you do withdraw it after that age is reached, you will still be required to pay any and all applicable income tax on it. It will basically be added to your overall income, (W-2).  Bill T.

I understand that Bill, but I don't understand why M25 thinks he can't get his till he's 65? It does increase your annual income by how ever much you withdraw unless it's a Roth IRA, but if you want it it's yours. Of course if your still working theirs not much reason for most people to withdraw from it, that might be what he means though.

[billt]

I understand that Bill, but I don't understand why M25 thinks he can't get his till he's 65? It does increase your annual income by how ever much you withdraw unless it's a Roth IRA, but if you want it it's yours. Of course if your still working theirs not much reason for most people to withdraw from it, that might be what he means though.

 I've never heard of any personal IRA that comes with a withdrawal penalty after the age of 59 1/2. The penalty is 10%, plus, usually depending on how much the withdrawal is, it will kick you up into the next higher bracket. It's not that uncommon for middle class people who earn a fair wage to lose .60 cents on the dollar for a early IRA withdrawal. I also believe there are extenuating circumstances, such as high unforeseen personal medical expenses, or "act of God" uninsured property damages, that will allow for early withdrawal without penalty. But I've never known, or heard of anyone actually doing it.  Bill T.

[Pathfinder]

I've never heard of any personal IRA that comes with a withdrawal penalty after the age of 59 1/2. The penalty is 10%, plus, usually depending on how much the withdrawal is, it will kick you up into the next higher bracket. It's not that uncommon for middle class people who earn a fair wage to lose .60 cents on the dollar for a early IRA withdrawal. I also believe there are extenuating circumstances, such as high unforeseen personal medical expenses, or "act of God" uninsured property damages, that will allow for early withdrawal without penalty. But I've never known, or heard of anyone actually doing it.  Bill T.

It's a Federal law that you can withdraw from an IRA after 59-1/2. Work-related 401k plans however, keep you hostage until you retire or quit the company.

[Sponsor]

[billt]

It's a Federal law that you can withdraw from an IRA after 59-1/2.

That is what I thought.  Bill T.