Erica is 35 and owns an IRA. At what age can she begin to receive distributions without a tax penalty?

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Multiple Choice

Erica is 35 and owns an IRA. At what age can she begin to receive distributions without a tax penalty?

Explanation:
The key idea is when IRA withdrawals stop triggering the 10% early withdrawal penalty. For a traditional IRA, you can withdraw without paying that penalty once you reach age 59 and a half. Before that age, withdrawals typically incur the penalty unless a specific exception applies (such as disability, medical expenses, or first‑time homebuyer costs). After 59 1/2, you can take distributions without the penalty, though ordinary income tax generally applies to traditional IRA withdrawals. So the earliest age at which penalty-free distributions are possible is 59 1/2.

The key idea is when IRA withdrawals stop triggering the 10% early withdrawal penalty. For a traditional IRA, you can withdraw without paying that penalty once you reach age 59 and a half. Before that age, withdrawals typically incur the penalty unless a specific exception applies (such as disability, medical expenses, or first‑time homebuyer costs). After 59 1/2, you can take distributions without the penalty, though ordinary income tax generally applies to traditional IRA withdrawals. So the earliest age at which penalty-free distributions are possible is 59 1/2.

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