Taking Early IRA Withdrawals

  • If you’re considering retiring before age 59 1/2, it’s critical to explore your options carefully.

  • Once you place funds in an Individual Retirement Account (IRA) or Non-Qualified Annuity product, typically you cannot access these funds until age 59 1/2 without a 10% penalty tax.

  • Exceptions to this tax apply only under certain circumstances. Section 72(t) of the Internal Revenue Code lists these specific exemptions.

  • In order to avoid the 10% penalty, IRA and Non-Qualified Annuity Owners must receive withdrawals as a series of “Substantially Equal Periodic Payments”. These Substantially Equal Periodic Payments must be calculated using one of three (3) methods: 

    • Required Minimum Distribution, (RMD)

    • Fixed Amortization

    • Fixed Annuitization

  • ICM Asset Management’s investment professionals have the experience necessary to safely guide you through the process to avoid the 10% penalty tax.