Below is a list of the types of distributions offered by IRAs.

• Age 59 ½ or Older (Normal for Traditional IRA)
  • Any distribution made from the IRA when the IRA owner is 59 ½ or older
  • Rollover
  • Required minimum distribution for individuals age 70 ½ or older (see the procedure here)
  • Conversion from a Traditional IRA to a Roth IRA when client is age 59 ½ or older
• Correction of an Excess Contribution
  • Either an unwanted contribution (the contribution is allowed but the IRA owner no longer wants it) or true excesses (the contribution is not allowed by law).
    
• Death
  • A distribution that occurs due to IRA owner’s death. The distribution is requested by the beneficiary.
• Direct Rollover to an employer–sponsored Eligible Retirement Plan
  • Distribution of conduit IRA funds (funds deposited in IRA from a QP) to IRA owner’s new eligible retirement plan.
    
• Disability
  • Withdrawals when the IRA owner has become permanently disabled, rendering him/her incapable of gainful employment. In certain circumstances, request a physician’s written statement to document disability.
• Early distribution, exception applies
  • Distribution prior to age 59 ½ for periodic payments calculated using either single or joint life expectancy (typically for those who retire before the age of 59 ½).
  • Conversion from a Traditional IRA to a Roth IRA when client is younger than 59 ½.
• Early distribution, from Roth IRA
  • Distributions from a Roth IRA that are not qualified distributions (occurs before the Roth IRA owner meets certain requirements) may be subject to income tax and an additional 10 percent early distribution penalty.
• Early distribution, no known exception
  • Distribution prior to age 59 ½ with no known exceptions (for example: 1st time home buyer, higher education expenses, medical expenses, or medical insurance premiums when unemployed). Use code 1 even if the IRA is withdrawing due to one of the above exceptions. The client is responsible for reporting the exception to the IRS.
    
• IRS Levy
  • Taxable IRA assets taken to satisfy an IRA tax levy (under IRC Section 6331) and reported as a distribution are subject to income taxes, but not the 10 percent penalty tax.
• Prohibited Transaction
  • Very rarely used. Causes the IRA to lose its tax-exempt status. An example of a prohibited transaction would be the IRA owner taking a loan from the IRA.
    
• Qualified Health Savings Account Funding Distribution
  • A health savings account (HSA) owner may take a one-time (once-in-a-lifetime) traditional IRA or Roth IRA distribution to fund an HSA (a qualified HSA funding distribution).
• Re-characterization 
  • Distribution of funds to re-characterize a Traditional IRA contribution to a Roth IRA contribution, a Roth IRA contribution to a Traditional IRA contribution, or a Roth IRA conversion contribution to a Traditional IRA contribution.
• Revocation
  • Owner revokes the IRA within seven calendar days of receiving the disclosure statement of basic IRA rules
• Transfer to another IRA
  • Funds moving from one custodian to another financial institution