Early IRA and 401k Withdrawals, Paying Penalties - Ask the Experts - AARP Bul...

Can I Tap My IRA Before Retirement

You can but it' s better not to

Q. Do I have to retire before I can take money out of my IRA? A. No, you don't have to retire. But in most cases, you'll be required to pay a 10 percent penalty if you take money from your before you turn 59 1/2. The same goes for an early tapping of a Keith Brofsky/Getty Images It's better not to tap into IRA before retirement. If you're eligible for a penalty-free withdrawal, think twice about proceeding. Unless you truly need the money now, it may be better to leave the account alone — and keep the tax man waiting. Still, you can't do that forever. By April 1 of the year following the year in which you turn 70 1/2, you'll be required to begin withdrawing money from your IRA or 401(k). You may also like: Carole Fleck is a senior editor at the AARP Bulletin.

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