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People frequently have questions about the rules governing withdrawing from self-directed IRAs. It’s your money, and you want to know how to access it- and when you’ll be required to. David Moore of IRA Advantage has all the information you need about the ins and outs of IRA investments.

Withdrawing Funds from Your Self-Directed IRA

Understanding the rules about withdrawal of funds from your self-directed IRA is critical. People come to us with all kinds of questions: When can I get my funds? When do I have to access that money? What’s it going to cost me?

Think of it this way: if you’re under 59 1/2, the money’s going to be in the plan. If you pull funds out, you’re going to pay a penalty to do so.

Anytime you’re working with an IRA, 59 1/2 is basically the timeline to get it out. At 70 1/2 is when you have required minimum distributions (RMDs).

When Am I Allowed to Withdraw Money from My Self-Directed IRA?

When we’re putting a self-directed account together, any IRA can become self-directed. So IRAs we can move around, work with a lot more easily than a 401(k) plan. If you’re happily employed with a company, you’re under 59 1/2, and it’s a current company employer plan, you’re pretty much stuck.

The only way you’re going to get access to those funds is by quitting the job. We’ve had people actually do that. We’ve encountered situations where people have quit a job because they felt they needed to get the access to the funds and do something else with that money. I’ve actually had business owners step away to do the same thing. So your access depends upon your age.

In summary
If you’re under 59 1/2: you’re not going to get access to funds unless you pay a penalty
If you’re 70 1/2 and above: you’re required to take RMD-required minimum distributions

Please don’t hesitate to reach out with additional questions or concerns you may have. Many can call themselves IRA experts. Be sure you’re dealing with true professionals when it comes to your retirement planning and your self-directed IRA. Give the IRA experts at IRA Advantage a call today! 503-619-0223