The traditional IRA withdrawal rules turn on three ages: you can take money out anytime, but a distribution before age 59½ generally adds a 10% early-withdrawal tax on top of ordinary income tax, penalty-free access opens at 59½, and required minimum distributions begin at age 73 (Source: IRS Publication 590-B, 2025).
A traditional IRA taxes withdrawals as ordinary income. A distribution before age 59½ adds a 10% early-withdrawal tax unless an exception applies. Required minimum distributions start at age 73, rising to 75 for those born in 1960 or later, with the first due by April 1 of the following year (Source: IRS Pub 590-B, 2025; SECURE 2.0 Act).
How are traditional IRA withdrawals taxed?
Traditional IRA withdrawals are taxed as ordinary income because contributions generally went in pre-tax and grew tax-deferred. The taxable amount is added to your other income and taxed at your marginal rate, which reaches 22% at $50,400 of taxable income for a single filer in 2026. There is no capital-gains treatment inside the account, and only a return of nondeductible basis or a qualified charitable distribution reduces the taxable amount (Source: IRS Pub 590-B, 2025).
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The pro-rata rule when you have nondeductible basis (Form 8606)
If you ever made nondeductible contributions, part of each withdrawal is a tax-free return of that basis. The nontaxable share is figured under the pro-rata rule across all your traditional, SEP, and SIMPLE IRAs and reported on Form 8606, so after-tax dollars are never withdrawn first (Source: IRS Pub 590-B, 2025; Form 8606 Instructions, 2025).
Example: if your IRAs total $200,000 and include $20,000 of basis, 10% is basis, so a $10,000 withdrawal is roughly $1,000 nontaxable and $9,000 taxable. Keep every prior Form 8606 to track that basis.
Does my state tax IRA withdrawals?
Federal tax is only part of the picture. Many states also tax IRA distributions as income, some exempt part or all of retirement income, and a handful levy no income tax at all. Because federal IRS guidance does not address state treatment, your state statute governs that portion, so the after-tax result depends on where you live.
Can I withdraw from a traditional IRA before age 59½?
Yes, you can withdraw from a traditional IRA before age 59½ at any time, but the part includible in income is subject to a 10% additional tax unless a specific exception applies. You report the 10% tax, or the exception, on IRS Form 5329; the exception waives the penalty only, and the taxable portion is still ordinary income (Source: IRS Topic 557).
The custodian reports the distribution on Form 1099-R, and Form 5329 either pays the 10% tax or claims an exception. The 10% is charged on top of, and separately from, the ordinary income tax on the same dollars.
What are the exceptions to the 10% early-withdrawal penalty?
The 10% additional tax is waived when an IRA distribution meets one of the exceptions below. The exception removes the penalty only; the distribution is still taxable as ordinary income to the extent includible in income. SECURE 2.0 added several newer exceptions that many older guides still omit (Source: IRS Topic 557; IRS Pub 590-B, 2025).
| Exception (IRA) | 2026 limit or condition |
|---|---|
| First-time homebuyer | Up to $10,000 lifetime |
| Qualified higher-education expenses | No dollar cap |
| Unreimbursed medical expenses | Amount above 7.5% of AGI |
| Health insurance premiums while unemployed | Qualifying conditions apply |
| Total and permanent disability | No dollar cap |
| Substantially equal periodic payments (SEPP / 72(t)) | Series must run per IRC 72(t) |
| Qualified birth or adoption | Up to $5,000 per child or adoptee |
| Terminal illness (SECURE 2.0) | Certified terminally ill individual |
| Emergency personal expense (SECURE 2.0) | $1,000 per year, repayable within 3 years |
| Domestic abuse victim (SECURE 2.0) | Lesser of $10,000 (indexed) or 50% of account |
| Federally declared disaster (SECURE 2.0) | Up to $22,000 per disaster |
| Qualified reservist distribution | Called to active duty |
| IRS levy on the IRA | Amount of the levy |
| Death of the account owner | Distributions to beneficiary or estate |
The SECURE 2.0 items are frequently out of date on legacy pages. The domestic-abuse distribution is capped at the lesser of an inflation-indexed $10,000 base or 50% of the account. The $1,000 emergency withdrawal is repayable within 3 years, and the disaster exception allows up to $22,000 per disaster (Source: SECURE 2.0 Act Secs. 115, 331).
What are the withdrawal rules at age 59½ and older?
Once you reach age 59½, you can take any amount from a traditional IRA without the 10% early-withdrawal tax. Distributions remain taxable as ordinary income, but the penalty no longer applies. No distributions are required yet, and you can keep contributing earned income up to the $7,500 IRA limit for 2026 (Source: IRS Topic 557; IRS Notice 2025-67).
The window between 59½ and 73 is when many households have more control over timing. With no distributions yet required, some people study whether spreading withdrawals or a Roth conversion across lower-income years fits their situation.
Large withdrawals can also lift thresholds like the 3.8% net investment income tax above $200,000 of MAGI and Medicare IRMAA surcharges above $109,000 of single MAGI, so many investors weigh timing with a professional.
When do required minimum distributions start?
Required minimum distributions from a traditional IRA start at age 73. The first RMD is due by April 1 of the year after you turn 73, and later RMDs by December 31. Under SECURE 2.0, the required age rises to 75 for those born in 1960 or later, first affecting 2035 (Source: IRS Pub 590-B, 2025; SECURE 2.0 Act Sec. 107).
The required beginning age is 73 today, not the old age of 72 that many stale pages still show, and it moves to 75 for those who attain age 74 after December 31, 2032. See our 2026 required minimum distributions guide for the full mechanics.
How are RMDs calculated?
An RMD equals your prior December 31 account balance divided by an IRS life-expectancy factor for your age, most commonly the Uniform Lifetime Table factor. With multiple traditional IRAs, you compute the required amount for each account separately, then may withdraw the combined total from any one of them or spread it across several, in whatever proportion you choose (Source: IRS Pub 590-B, 2025).
- Take the traditional IRA balance as of December 31 of the prior year.
- Find your life-expectancy factor in the IRS Uniform Lifetime Table for your age.
- Divide the balance by the factor. The result is that year’s RMD.
- Withdraw at least that amount by the deadline (April 1 the first year, December 31 thereafter).
Example: a $500,000 balance divided by a 26.5 factor produces an RMD of about $18,868, and you can always take more.
What happens if you miss an RMD?
Missing an RMD triggers an excise tax of 25% of the shortfall under IRC Section 4974, reduced from the former 50% rate by SECURE 2.0. The tax drops to 10% if you correct the shortfall by the end of the second year after the missed year. Report it, or request a waiver, on Form 5329 (Source: SECURE 2.0 Act Sec. 302).
Can a QCD satisfy my RMD?
Yes. From age 70½, an IRA owner may send funds directly from the IRA trustee to an eligible charity as a qualified charitable distribution (QCD). A QCD can count toward your RMD and is excluded from taxable income. The annual QCD exclusion is indexed to $111,000 for 2026, and it is available from an IRA, not a 401(k) (Source: IRS Pub 590-B, 2025; IRS Notice 2025-67).
How much tax will I pay on a $50,000 IRA withdrawal?
A $50,000 taxable traditional IRA withdrawal costs the same federal income tax at every age because it is ordinary income. Only the 10% early-withdrawal tax changes, applying before age 59½ when no exception is met. At an assumed 22% federal rate that is $11,000, plus $5,000 more if the early tax applies, for $16,000 total (Source: IRS Topic 557).
The table shows how the same $50,000 withdrawal lands by age, assuming a 22% federal rate and no nondeductible basis. State tax is excluded because it varies. The 22% bracket begins at $50,400 for a 2026 single filer (Source: IRS Notice 2025-67; rate assumed).
| Scenario | Federal income tax (22%) | 10% early tax | Total federal tax |
|---|---|---|---|
| Before 59½, no exception | $11,000 | $5,000 | $16,000 |
| Before 59½, exception applies | $11,000 | $0 | $11,000 |
| Age 59½ or older | $11,000 | $0 | $11,000 |
Traditional vs. Roth IRA withdrawal rules
Traditional and Roth IRAs differ mainly in when tax is paid and whether distributions are required. Traditional IRA withdrawals are taxed as ordinary income and require RMDs from age 73. Qualified Roth IRA withdrawals are generally tax-free, and the owner has no lifetime RMDs. Both apply the 10% early tax before age 59½ (Source: IRS Pub 590-B, 2025).
| Feature | Traditional IRA | Roth IRA |
|---|---|---|
| Tax on qualified withdrawals | Ordinary income | Generally tax-free |
| 10% early tax before 59½ | On taxable portion, exceptions apply | On earnings, exceptions apply |
| RMDs for the owner | Yes, from age 73 | No RMDs for the owner |
Because the two accounts tax withdrawals differently, some households study a conversion before required distributions begin. For the distribution side, see Roth IRA withdrawal rules and Roth vs. traditional IRA.
What are the rules for inherited traditional IRAs?
A beneficiary who inherits a traditional IRA follows separate rules. For owners who die after 2019, many non-spouse beneficiaries must empty the account by the end of the tenth year after the owner’s death under the SECURE Act 10-year rule. Inherited-IRA distributions are exempt from the 10% early tax but remain taxable as ordinary income to the beneficiary (Source: IRS Pub 590-B, 2025; SECURE Act 2019).
Eligible designated beneficiaries, such as a surviving spouse, a minor child of the owner, or a disabled person, are excepted from the strict 10-year rule. When the owner had already begun RMDs, many 10-year beneficiaries must also take annual distributions in years 1 through 9. See our guide on inherited IRA rules and tax strategies.
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Frequently asked questions
How can I avoid paying taxes on my traditional IRA withdrawal?
You cannot make a taxable withdrawal fully tax-free, but you can reduce the tax. A qualified charitable distribution from age 70½ is excluded up to $111,000 for 2026, a return of nondeductible basis is tax-free, and spreading withdrawals across lower-income years can lower the rate (Source: IRS Pub 590-B, 2025).
At what age can I withdraw from my IRA without paying taxes?
No age makes a taxable traditional IRA withdrawal free of income tax. Age 59½ removes the 10% penalty, but the distribution is still ordinary income at every age. Only a qualified charitable distribution or a return of nondeductible basis avoids tax on part or all of it (Source: IRS Pub 590-B, 2025).
How much tax will I pay if I withdraw from my IRA?
A taxable IRA withdrawal is added to your other ordinary income, so the tax depends on your bracket. At an assumed 22% federal rate, a $50,000 withdrawal costs about $11,000, plus a $5,000 early-withdrawal tax if you are under age 59½ without an exception (Source: IRS Topic 557).
How much can I take out of my IRA without penalty?
From age 59½, you can take any amount without the 10% early-withdrawal penalty, though the taxable portion is still ordinary income. Before 59½, penalty-free access is limited to amounts meeting an exception, such as $10,000 for a first home, $22,000 per disaster, or unlimited amounts for disability (Source: IRS Topic 557).
What is the 10% early withdrawal penalty on an IRA?
The 10% early-withdrawal penalty is an additional tax under IRC Section 72(t) on the taxable part of an IRA distribution taken before age 59½. It is charged on top of ordinary income tax, reported on Form 5329, and waived when an exception applies, such as SEPP payments or the SECURE 2.0 emergency and disaster exceptions (Source: IRS Topic 557).
Do I have to pay taxes on my IRA after age 72?
Yes. Age does not make traditional IRA withdrawals tax-free. Distributions stay taxable as ordinary income at every age, including after 72 and after RMDs begin at 73. A qualified charitable distribution of up to $111,000 for 2026 satisfies an RMD without adding taxable income (Source: IRS Pub 590-B, 2025; IRS Notice 2025-67).
How much do I have to withdraw from my IRA at age 73?
Your first RMD equals your prior December 31 balance divided by your IRS life-expectancy factor, due by April 1 of the year after you turn 73. There is no fixed dollar amount; it depends on your balance and your age factor from the IRS Uniform Lifetime Table. For example, $500,000 divided by 26.5 is about $18,868 (Source: IRS Pub 590-B, 2025).
What happens if I don’t take my required minimum distribution?
Missing an RMD triggers a 25% excise tax on the amount not taken, reduced from the former 50% rate by SECURE 2.0. The tax drops to 10% if you correct the shortfall within the IRS correction window, generally the end of the second year after the missed year (Source: SECURE 2.0 Act Sec. 302).
