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So, you finally got your individual retirement account and you are patiently awaiting the day when you can retire with it. Before that great day comes, however, it is important to understand how IRA distributions work. This tutorial will take you through an explanation of the ways you can receive distributions. Along with that, it will explain when distributions are taxed and when they are not taxed.
We will focus on the traditional IRA in this tutorial. Although the rules can be complicated, knowing your withdrawal options will make withdrawing your IRA money a much easier and more cost-effective way to retire. We will discuss the following topics:
- WHEN ARE IRA DISTRIBUTIONS ALLOWED?
- WAYS IRA DISTRIBUTIONS CAN BE TAKEN
- When Are IRA Distributions Taxed?
- SUMMARY OF IRA DISTRIBUTIONS
Let's start by learning when you are allowed to take distributions from your IRA.