Basics

• Hardship withdrawals are generally not allowed from an IRA because a hardship withdrawal is a qualified plan concept. You may take a withdrawal from your IRA at any time in any amount up to the amount in your IRA. The timing of your withdrawal will determine whether you'll incur penalties.
  
  

Taxation of Withdrawals

• Withdrawals from a traditional IRA will always result in increased taxes, as distributions must be included in your gross income in the year in which you received the distribution. Withdrawals from a Roth IRA will be tax-free; however, you may be subject to an early withdrawal penalty even with a Roth IRA.
  
  

Early Withdrawals

• Early withdrawals are any withdrawal prior to reaching age 59 1/2. Early withdrawals incur a 10 percent additional tax on your distribution. This 10 percent tax is in addition to the regular income tax you'll pay on your early withdrawal.
  
  

Penalty-Free Distributions

• You may commence distributions from your IRA without being assessed any penalties at any time upon or after reaching age 59 1/2. If you use your early withdrawal from your IRA for any of the following reasons, you will not be assessed the additional 10 percent tax but you'll still include the distribution in your gross income.
  
  The reasons are as follows: Distributions are used for unreimbursed medical expenses that constitute more than 7.5 percent of your adjusted gross income; distributions are used for your medical insurance and the distribution is not in an amount greater than that cost; you are disabled; you are the beneficiary of a deceased IRA account holder; you are receiving distributions in the form of an annuity; the distribution is used for your higher education expenses and are not more than those costs; the distribution is used for a first home; distribution is the result of an IRS levy; and the distribution is a qualified reservist distribution.
  
  

Hardship Withdrawls

• In order to make a hardship withdrawal from your ING IRA account, you must use ING's website. In certain cases, ING may require you to make withdrawals using a properly executed distribution form. You must request that form in writing. It takes two to three business days for your request to be processed and the funds to reach your linked Account. IRA distributions may be sent by check.