How many times have you been faced with a family financial crisis and could not find help for your problem. You say to yourself, “I do have an IRA nest egg, but am I allowed to touch it?”
The answer is yes and no. Since the birth of the IRA changes have been made making it possible, under special rules, to go into an account. To avoid the 10% penalty certain exceptions must be met. However, if the 10% penalty is not an issue…you can withdraw from your account at any time.
Special rules that would avoid the 10% Penalty:
(1) Medical emergencies:
Families who are faced with medical expenses greater than 7.5% of your gross income.
(2) Disability:
You become totally disabled with proof from a physician.
(3) Unemployment:
For 12 consecutive weeks you draw unemployment and pay medical insurance premiums.
(4) Education:
You meet the exception rule related to higher education expense.
(5) Home buyer:
A maximum of $10,000 can be withdrawn for first time home buyers which includes…you & your spouse, your children, grandchildren or your parents.
The Internal Revenue Publication # 590 will answer all questions and can be obtained at any IRS office or by going on line to:
www.irs.gov.
Don’t be afraid to dip into your IRA…just be certain you quality under the exception rule to avoid the 10% penalty.
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Reviewed by 000 000
2/11/2009
I asked to withdrawal from my IRA...to pay funeral expenses for my spouse. I was told...NO!
I can only have it for these three reasons
1. I am no longer an employee...penalty
2. I retire
3. I die
