A partial withdrawal from a traditional IRA leaves money in the account for future use. You may take partial withdrawals on a regular schedule or as needed, but you probably will be subject to penalties and additional taxes.
Early Distributions
Making partial or complete withdrawals from your traditional IRA before age 59½ may subject you to a 10% tax penalty.
Exceptions to Penalties
The 10% penalty tax for withdrawals made before age 59½ is waived in the following cases: first-time home purchases (up to $10,000); qualified educational expenses; death; disability; medical expenses exceeding 7.5% of your adjusted gross income; health insurance for the long-term unemployed, and substantially equal periodic payments.
Partial Withdrawals to Other IRAs
If you take some money out of one IRA to contribute to another IRA, there is no penalty if the funds are moved within 60 days.
Required Minimum Distributions
You must begin taking required minimum distributions by April 1 of the year following the year in which you reach age 70½. The distributions are based on the value of your account and your life expectancy.
Taxes
All withdrawals from traditional IRAs, no matter when they are taken, generally are taxed as ordinary income.
