Core Points - IRA withdrawals can be made at any time for any reason, but early withdrawals before age 59 ½ may incur penalties [1] - Traditional IRAs are funded with pre-tax money, and withdrawals are subject to income tax and a 10% penalty if taken before age 59 ½ [2] - Roth IRAs are funded with after-tax money, allowing tax- and penalty-free withdrawals after age 59 ½ and if the account is at least 5 years old [3][4] Traditional IRA Withdrawal Rules - Contributions to a traditional IRA are often tax-deductible, but withdrawals incur ordinary income taxes [2] - Required minimum distributions (RMDs) must begin at age 73, increasing to age 75 in 2033 under the Secure Act 2.0 [3] Roth IRA Withdrawal Rules - Roth IRAs allow for more flexibility; contributions can be withdrawn tax- and penalty-free at any age [4] - Withdrawals from a Roth IRA are treated in a specific order, with contributions coming out first, followed by converted amounts, and finally earnings [5] Exceptions to Early Withdrawal Penalty - Certain situations allow for penalty-free withdrawals before age 59 ½, including contributions, rollovers, and specific financial hardships [5][11] - Examples of exceptions include withdrawals for birth or adoption expenses, financial losses from disasters, and first-time home purchases [11][12] IRA Loans and Rollovers - Unlike 401(k) plans, IRA loans are prohibited; borrowing from an IRA results in loss of tax-advantaged status [7][10] - A 60-day IRA rollover allows for tax-free transfers between IRAs if funds are redeposited within the specified timeframe [8][9]