- SELF-DIRECTED IRA KNOWLEDGE CENTER
- WITHDRAWAL FROM A SELF-DIRECTED IRA
- DISTRIBUTIONS - TAX REPORTING
Will I Be Penalized for Taking a Distribution Prior to Reaching Age 59½?
Possibly. An early withdrawal penalty of 10% applies on all pre-tax withdrawals from retirement accounts when the distribution is taken before the account owner reaches age 59 ½. However, there are some exceptions to the 10% penalty. Please see IRS Publication 598 for more information on distribution exceptions.