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    WMorg555's Avatar
    WMorg555 Posts: 105, Reputation: 1
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    #1

    Jan 17, 2012, 09:50 AM
    Money from IRA for home repair
    Will an 84 year old who has an IRA be penalized for taking $20,000 out to do a home repair?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jan 17, 2012, 10:34 AM
    No - early withdrawal penalties apply only to people under 59-1/2 years of age.

    If this is a traditional IRA anyone over age 70-1/2 is REQUIRED to take minimum annual distributions - at age 84 the required minimum distribution is 6.45% of the account value. Income tax will be owed on the portion of the withdrawal attributable to pre-tax contributions and earnings.

    If this is from a Roth account that has been in existence at least 5 years the withdrawal is tax free, and there is no mimumum required annuall withdrawal.
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