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