Some clients may have unique circumstances that could impact the taxes (and penalties) that must be paid if a distribution is taken from their traditional IRA. The exceptions to the usual distribution rules can be hard to remember especially since many exceptions rarely come up.
To help make this easier, we have created the “Will A Distribution From My Traditional IRA Be Penalty-Free?” flowchart. This flowchart helps to quickly identify unique situations that affect whether a distribution is taxed and penalized, and considers the following:
Updated for 5/1/2020 (including The SECURE Act and The CARES Act)