Solution: The earliest age at which someone can withdraw money from traditional retirement account over $10,000 is 59 1/2 years and this will not subject to any early withdrawal penalty. There is also same withdrawal limit in Roth IRA. But the difference is withdrawals from traditional IRA are taxable at ordinary income tax rate. (only contribution breaks the taxes not withdrawals but it reverse in case of Roth IRA)
Since, Joan is 62, and withdrawals is under $10,000 so, she will not pay early withdrawal penalty but these withdrawals would be taxable. Thus, she should report $10,000
she has another option to hold withdrawals up to 70 1/2 age but after which she have to take minimum distribution,
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