Usually, IRA withdrawals before age 59 1/2 are subject to a 10 percent penalty tax in addition to regular income tax. However, the tax code contains a specific exemption for “substantially equal periodic payments.” If you take your money out on a regular schedule for at least five years or until you’re 59 1/2, whichever comes later, you won’t owe the 10 percent penalty.
Once you start on this program you can’t stop, except in cases of death or disability. Moreover, you may have to file an extra form to let the IRS know why no penalty tax is due.
If you’re interested, contact your IRA custodian and ask about your options. There are three ways to take money out, involving different ways of calculating life expectancy. Generally, these tables can be manipulated to take out just about any amount you wish, without the 10 percent penalty.