Regardless of your age, you'll need to file a 1040 form and show the amount of the IRA withdrawal. If you're 59 and a half years old or older, you usually have no problems. However, if you're younger than that, you'll be penalized for withdrawing early from traditional IRAs or for early withdrawing profits from Roth IRAs. Possibilities include converting traditional IRAs into Roth IRAs, having several IRAs, donating IRA values to a charity, or creating a QLAC.
Another strategy is to convert part of your traditional IRA into a Roth IRA in years when you expect to be in a lower tax bracket. If you expect your tax bracket to be higher when you retire than it is now, it may make sense to convert your traditional IRA to a Roth IRA. You can also withdraw money from a traditional IRA and avoid paying the 10% penalty if you transfer the money to another qualified retirement account (such as a Roth IRA) within 60 days. The IRS exceptions are a little different for IRAs and 401 (k) plans; they even vary slightly for different types of IRAs.
In addition, if you deposit money into your IRA but then decide that you need it back, you can usually withdraw a contribution made to a traditional IRA tax-free, as long as you do so before that year's tax filing deadline and don't deduct the contribution from your taxes. Converting a Roth IRA is the process of converting your traditional IRA into a Roth IRA. The other time you risk receiving a tax penalty for withdrawing money early is when you transfer money from one IRA to another qualified IRA. There are some exceptions due to financial hardship to the penalties for withdrawing money from a traditional IRA or from the investment earnings portion of a Roth IRA before turning 59 and a half years old.
There are several IRA options and many places to open these accounts, but the Roth IRA and the traditional IRA are by far the most popular types.