When am I allowed to take a distribution without penalty? James July 17, 2018 14:42 Updated Follow Once you reach age 59½ you are able to start taking distributions without penalty, though you may still owe taxes on the distribution. Related articles What is a required minimum distribution (RMD)? Does Alto impose any additional restrictions on investments that the IRS doesn't? Distribution What income can be contributed to a Traditional IRA? Who initiates the transfer from one custodian to another? Comments 0 comments Please sign in to leave a comment.