Skip Navigation Download Adobe Acrobat Reader 5.0 or higher to view PDFs.
Man looking out a brightly lit window

Financial Learning Center


Other Borrowing Approaches

Penalty-Free IRA Withdrawals

Since you are not permitted to borrow from your Individual Retirement Account, you can make a penalty-free withdrawal under certain circumstances. The 10% penalty that applies to most early withdrawals from IRAs (before the account owner reaches age 59½) will not apply to the following types of withdrawals:

  • Distributions made after the death of the account owner.*
  • Distributions made due to disability of the account owner.*
    • Withdrawals used to pay qualified medical expenses that exceed 7.5% of adjusted gross income for 2017 and 2018
  • Withdrawals used to pay qualifying health insurance premiums for certain unemployed individuals.
  • Withdrawals for qualified higher education expenses of the taxpayer, spouse, children, or grandchildren.
  • Withdrawals for a qualified first-time homebuyer, subject to a $10,000 lifetime limit. The withdrawal must be used to acquire a principal residence of the taxpayer, spouse, child, grandchild, or ancestor. The withdrawal is permitted, generally, if the taxpayer has not owned a principal residence in the preceding two years.*

* If these distributions are made from a Roth IRA, they will also be tax-free provided the Roth IRA was held five years or more.

IMPORTANT NOTE: Be careful not to jeopardize your retirement savings by making withdrawals from your IRAs. Explore other ways to borrow first.

Share Article:
Add to GooglePlus

Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window).  UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.


BrokerCheck