fpPathfinder

Helping Diligent Advisors Ensure They're On The Right Planning Path

Already a Member? Login
Need Help?
Refer Friends
GUIDES
All Guides
Categories
General
Cashflow Important Dates & Numbers Recurring New Client Family-Related Service Calendar Debts Caring Loved Ones Divorce Planning College Planning / Funding Deliverable Age-Related Planning 20s-30s Age-Related Planning 40s-50s Age-Related Planning 60s Age-Related Planning 70s
Working / Accumulation Phase
Employee Benefits-related Planning Issues Business Owners Saving For Retirement Stock Options
Retirement / Decumulation
Social Security Healthcare Distributions Misc. Charitable Giving
Tax Planning
Business Owners Review Tax-related Documents Misc Sale of Asset Deductions & Credits Important Tax Concepts & Numbers Taxable Distributions
Insurance Planning
Medicare Property Annuities Life Insurance Long-Term Care Insurance Health Insurance
Estate Planning
Chartible Giving Inheritance Loss of Loved One Step Up Estate Planning Documents
Assets and Investment Planning
HSAs IRAs Annuities House and Home Investments Stock Options
Life Events
Child-Related Job-Related Death Marriage Divorce Sudden Wealth Event Moving/Home-Related Starting Or Selling A Business Starting Social Security Unique Life Event/Other Starting Retirement Medicare-Related Starting RMDs
One-Click Downloads
Full List Of Guides
Guide Recommendation Tool
Guide Recommendation Tool
Go Back
Category:
Retirement / Decumulation, Tax Planning, Assets and Investment Planning

Will A Distribution From My Traditional IRA Be Penalty-Free?

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:

  • Implications for IRAs with nondeductible IRA contributions
  • Conditions that trigger the 10% early distribution penalty
  • Exceptions to the 10% early distribution penalty
Related Guides
What Issues Should I Consider Before I Retire?
Category: Retirement / Decumulation, General, Life Events
Should I Inherit My Deceased Spouse’s Traditional IRA?
Category: Retirement / Decumulation, Estate Planning, Assets and Investment Planning
Can I Avoid Taking My RMD After Reaching My Required Beginning Date (RBD)?
Category: Retirement / Decumulation, Tax Planning, Assets and Investment Planning, Life Events
Will A Distribution From My Roth IRA Be Tax & Penalty-Free?
Category: Retirement / Decumulation
Will The Distribution From My HSA Be Tax And Penalty-Free?
Category: Retirement / Decumulation, Assets and Investment Planning

Getting Your Referral Stats

What Customers Are Saying About Us

Hundreds of other advisors are actively using fpPathfinder. Read what those lovely people have to say about us.
“fpPathfinder is the only planning tool that tries to address all of the obstacles facing our clients”
— Cathy Curtis, Curtis Financial Planning
“I love fpPathfinder. I use it nearly every day. Clients think it is very clear and easy to understand and it has increased our credibility.”
— An advisor in Utah
“fpPathfinder is a great tool! It mirrors much of what I've developed on my own for tax planning, life events, etc. However, it's been great to double-check my own work in those areas and also to motivate me to deepen my knowledge on other topics”
— Jonathan, an advisor in Colorado
“It is very helpful for us when we have a client in and we have an issue at hand. Walking through the checklist helps us big time.”
— William, an advisor In Massachusetts
“Our team has really liked the charts and were particularly pleased with the traditional IRA vs. 401k for a business and the QBI chart.”
— Scott, an advisor in Oregon
“I love the new "share a link" feature. This has made it much easier to send flowcharts and checklists to our clients. Thanks for the add!”
— An advisor in Texas
“Your software and platform are awesome and super helpful to me and my clients”
— Clinton, an Advisor in New York
Become a Member

Sign Up to Receive Updates

Join our mailing list to be updated as we release new flowcharts and checklists that might be of interest.
  • This field is for validation purposes and should be left unchanged.
Close