How to Draw IRA While Working
- 1). Meet with a tax adviser regarding the implications of taking money out of an IRA while you are still working. IRA distributions are added to annual income and may raise your tax bracket. Consider how much you plan on taking out of the IRA for the entire year.
- 2). Calculate any penalties on the IRA. If you are under age 59 1/2, expect to pay a 10 percent tax penalty on a traditional or Roth IRA distribution. Roth IRAs will also pay a penalty if you have not held the Roth IRA for at least five years.
- 3). Call the IRA custodian at the number provided on the IRA statement and request a distribution form. You may seek a regular monthly distribution or just a one-time distribution. Make sure the IRA custodian sends you the correct form.
- 4). Fill out the form, sign it and submit it to the IRA custodian.
