Taxes and penalties
You can begin taking withdrawals from your individual retirement accounts penalty-free, starting at age 59½ regardless of whether you are still working.*
Withdrawals from your traditional IRA or 401(k) are generally taxed as ordinary income. If you are older than 59½, withdrawals from your Roth IRA are not taxed as long as it has been more than 5 years since your first Roth IRA contribution.
Required minimum distributions (RMDs)
Beginning at age 72,† you are required to take a minimum amount out of your IRA (but not Roth IRAs) every year.
Be aware that the rules for RMDs are strict and making a mistake could result in a 50% penalty on the amount not withdrawn on time.
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See RMD requirements for your Fidelity retirement accountsLog In Required |
† The change in the RMD age requirement from 70½ to 72 only applies to individuals who turn 70½ on or after January 1, 2020. Please speak with your tax advisor regarding the impact of this change on future RMDs.