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 Does Alto impose any additional restrictions on investments that the IRS doesn't? Distribution Who initiates the transfer from one custodian to another? Check Investment Eligibility Alternative Asset IRA Comments 0 comments Please sign in to leave a comment.