IRA Withdrawals: When You Can Access Retirement Funds Without Penalty

ARTICLE | November 12, 2025

Life has a way of presenting financial challenges when we least expect them. Perhaps you're facing mounting medical bills, considering going back to school, or dealing with an unexpected job loss. In moments like these, that nest egg you've been carefully building in your Individual Retirement Account might seem like a lifeline. While IRAs are designed to help secure your financial future during retirement, the reality is that circumstances sometimes require accessing these funds earlier than planned.

The good news is that you can withdraw money from your IRA at any time and for virtually any reason. The less-than-ideal news? Such withdrawals come with significant financial consequences that you need to understand before making any hasty decisions. When you take money out of a traditional IRA before reaching age fifty-nine and a half, you're generally looking at a double hit: first, you'll owe ordinary income tax on the entire withdrawal amount, and second, you'll face an additional ten percent early withdrawal penalty on top of that tax bill.

This article explores various circumstances under which you can access your IRA funds before age fifty-nine and a half without incurring the ten percent penalty. While you'll still owe ordinary income tax on these withdrawals, avoiding that additional ten percent penalty can make a significant difference in your financial situation. Whether you're facing medical expenses, considering a home purchase, or dealing with unemployment, knowing your options can help you make informed decisions about your retirement savings.

Read the full article here.

Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.