Ages for taking retirement distribution

• 55: Early retirees may withdraw from their employer retirement plans at age 55 and avoid the IRS 10% premature distribution penalty.

• 59½: To withdraw assets from any type of IRA (Traditional, including rollover, SEP and SIMPLE IRAs), you must wait until 59½ to avoid the 10% federal (2.5% state) penalty. You can avoid the penalty if you meet one of the exceptions or roll-over the distribution in a timely manner. Hardship is not one of the exceptions.

• 70½: You must begin taking distribution from your Traditional IRAs by April 1 of the year following the year reaching age 70½. This rule is called the Required Minimum Distribution (RMD). If you are retired, you must begin making distribution from your 401K accounts by April 1 of the calendar year after turning age 70½ or April 1 of the calendar year after retiring, whichever is later.