Fidelity.com Help - IRA Withdrawals (2024)

Through the Electronic Funds Transfer service, you can withdraw from your IRA. When in doubt about an order in an IRA, consult your tax advisor before placing the order.

For information about contributing to your IRA, see IRA Contributions. For information about transferringmoney between your Fidelity and bank accounts, see Transferring Money or Shares.

Making IRA Withdrawals Online

• What types of IRAs are eligible for online withdrawals?
• What types of IRA withdrawals are eligible online?
• When I withdraw from my IRA, am I withdrawing money or shares?
• How does the Sell All Shares option work?
• What should I know about the transaction amount displayed on the Pending Transfer page?
  
• Why can't I withdraw funds from an IRA and direct them to another retirement account?
• I placed a withdrawal request via Electronic Funds Transfer. Why can't I place another request?
• Why can't I make online withdrawals from SIMPLE IRAs and Keogh plans?
• If I change the address on my account, how long must I wait to make a withdrawal by check?
• What are the gift and generation-skipping transfer tax and annual exclusion limits?

IRA Tax Implications

• What are the IRS regulations for IRA withdrawals?
• How is my IRA withdrawal reported to the IRS?
• What is my withholding percentage?
• Why is the federal tax withholding percentage online different from the percentage I previously elected?
• What are the state tax implications of an IRA distribution?
• If I place a request for an IRA withdrawal after December 15, will my withdrawal be processed for the current or next year? For what year will this withdrawal be reportable?

Minimum Required Distribution Tracker

• What are Minimum Required Distributions?
• How do you calculate my Minimum Required Distribution for the year?
• How can I take the required distribution?
• How are MRDs taxed?
• How much do I have to withdraw if I have more than one Fidelity IRA?
• How should I take my MRDs if I have multiple accounts?
• What are the deadlines for taking MRDs?

Related Help Topics

MAKING IRA WITHDRAWALS ONLINE

What types of IRAs are eligible for online withdrawals?

The following brokerage and mutual fund IRAs are eligible for online withdrawals:

• Traditional IRA
• Roth IRA
• Rollover IRA
• SEP IRA
• Inherited IRA

For information on the different account types, select Products > Retirement.

What types of IRA withdrawals are eligible online?

You can make the following IRA transactions online:

• Withdraw from a brokerage IRA and direct the proceeds to a non-retirement Fidelitybrokerage account (Individual, Joint, College Investment Trust, UGMA/UTMA, or Trust) having the same Social Security number(SSN) as the originating IRA. Generally, the proceeds from the withdrawal will be available the next business day.
• Withdraw from an eligible mutual fund IRA, direct the proceeds to a non-retirementFidelity mutual fund (Individual, Joint, UGMA/UTMA, or Trust) account having the same Social Security number (SSN) as theoriginating IRA, and use the proceeds to buy shares in a mutual fund which is held in the non-retirement account. Generally,the proceeds from the withdrawal will be available the next business day.
• Withdraw from a Inherited IRA, direct the proceedsto a non-retirement Fidelity (Transfer on Death, UGMA/UTMA, and, for brokerage Inherited IRAs, College Investment Trust) account having thesame Social Security number (SSN) as the originating Inherited IRA. Generally, the proceeds from the withdrawal will be available thenext business day.
• Direct the proceeds to your bank account, if you have the Electronic Funds Transfer serviceestablished on your account. Generally, the proceeds will be available in 1 to 3 business days.
• Send the proceeds to your mailing address by check via U.S. mail.Generally, you willreceive the check in 5 to 7 business days. In addition, if you have updated your mailing address within the past 15 business days,then a withdrawal sent by check must be less than $10,000.
• Direct a withdrawal of up to $100,000 to a Fidelity non-retirement account (Individual,Joint, UGMA/UTMA, Transfer on Death, or Trust account and, in addition for brokerage IRAs, College Savings Plan account) havingthe same Social Security number (SSN) as the originating IRA), or an eligible bank account if you are currently signed up forthe Electronic Funds Transfer service on your IRA.

When I withdraw from my IRA, am I withdrawing money or shares?

When you make a withdrawal from a mutual fund IRA, you withdraw shares and can then direct them to an eligible non-retirement Fidelity mutual fund account. You specify the mutual fund held in the IRA from which you want to sell shares, and the fund held in the account you are transferring to for which you want to buy shares.

When you make a withdrawal from a brokerage IRA, you withdraw cash from the IRA's core account and can then direct it to the core account of an eligible non-retirement Fidelity brokerage account. In this case, shares in the IRA and non-retirement brokerage accounts do not have to be sold or purchased so long as there are adequate assets in the IRA core account.

How does the Sell All Shares option work?

When making a withdrawal from an eligible mutual fund IRA, you can select Sell All Shares to sell all shares in the specified mutual fund. If you enter an amount equal to or greater than 90% of the value of the mutual fund shares as of the last available closing price, Fidelity will sell all the shares and liquidate the position. If you don't want to liquidate the position, you can enter a lower amount.

What should I know about the transaction amount displayed on the Pending Transfer page?

The amount specified in the Quantity column on the Pending Transfers page is an estimated figure based on the distribution amount you requested. The amount includes any taxes withheld based on your tax withholding election or the government tax agency’s specified tax withholding requirements. However, the amount does not include any account or mutual fund fees that may be incurred when the transfer is executed. Once your transaction has settled you can visit account History and the trade confirmation on the statements tab, if applicable, for details on the amount of the final transaction.

Why can't I withdraw funds from an IRA and direct them to another retirement account?

You can withdraw funds from an IRA and direct them to another retirement account, but this functionality is not available online.When you withdraw money from one IRA and contribute it to another, the transaction is called a 60-day rollover. A rollover typically occurswhen moving an IRA from one institution to another. For more information about account options, see Products > Retirement.

I placed a withdrawal request via Electronic Funds Transfer. Why can't I place another request?

• Your brokerage IRA Core account does not have sufficient funds to cover the withdrawal.You can sell securities held in your IRA to fund the Core account.
• You are trying to request a second brokerage IRA withdrawal on the same day. You canonly make one brokerage IRA withdrawal request per day per account.
• You are trying to request a brokerage IRA withdrawal, and a request you made on a previousday is still pending.
• Withdrawals by check generally require five to seven business days, Electronic Funds Transfers(EFTs) generally require one to three business days, and withdrawals that are directed to a Fidelitynon-retirement account generally require one to two business days for processing.
• You are requesting a second withdrawal from the same mutual fund in a mutual fund IRAand there is another withdrawal request pending for the same mutual fund. You can request a withdrawal from a different mutual fundin your mutual fund IRA. For eligible mutual fund IRAs, you may have more than one withdrawal request processed at a time providedthe withdrawals are from different mutual funds

For PAS accounts, additional Electronic Funds Transfer requests cannot be entered via the Fidelity.com ifthere is already a pending transaction on the account. Additionally, the transfer amount out of a Portfolio Advisory Services(PAS) account cannot be more than 25% of the account's net worth. The transfer amount should be between $10.00 and $100,000.00,per day. Please contact a PAS representative at 800-544-3455 for further assistance.

Why can't I make online withdrawals from SIMPLE IRAs and Keogh plans?

SIMPLE IRAs and Keoghs are not eligible for online withdrawals because of tax reporting requirements. For withdrawaloptions on these types of accounts, contact a Fidelity representative at 800-544-6666.

If I change the address on my account, how long must I wait to make a withdrawal by check?

If you have changed your mailing address within the last 15 days, then the maximumonline IRA withdrawal by check amount allowed is $10,000. Fidelity has established this policy to protect our customers from fraud. You canwithdraw up to $100,000 from your IRA without any wait if you deposit your withdrawal into an eligible Fidelity non-retirement account. Or,use the Electronic Funds Transfer service (if established for your IRA) to transfer the money to yourbank account.

What are the IRS regulations for IRA withdrawals?

Based on IRS regulations, a withdrawal is considered either early or normal, depending upon your specific situation:

• If you are age 59 ½ or over, your withdrawal type is normal.
• If you are under age 59 ½ , your withdrawal type is early. You must specify ifyour withdrawal is early due to a disability. If so, you must satisfy the IRS definition of disabled.See What is an early distribution? to learn more.
• If you are the beneficiary on an IRA and you withdraw from your BeneficiaryDistribution Account (BDA) following the death of the original IRA owner, the witdrawal type is distribution due to death,regardless of whether you are over 59 ½.
• Distributions due to death are not subject to a 10% premature distribution penaltyeven if you are under age 59 ½.

For all other withdrawals, contact a Fidelity representative at 800-544-6666.

How is my IRA withdrawal reported to the IRS?

Your IRA withdrawal (IRA distribution) is reported to the IRS by Fidelity on Form 1099R.

What is my withholding percentage?

IRS regulations require Fidelity to withhold federal income tax at the rate of 10% from your total withdrawal unless your withdrawal isfrom a Roth IRA, or unless you elect otherwise. You can change your tax withholding percentage by entering any whole number between 10 and 99or by electing not to have federal tax withheld (provided that you have supplied Fidelity with a U.S. address).

For IRAs other than Roth, your state income tax withholding requirements are determined by the state of residence indicated in your legal addresson file with Fidelity, and whether or not Federal income tax is withheld. When you request an IRA distribution using Fidelity.com, theappropriate state tax information and withholding options display. For more information, see What are the state tax implications of an IRA distribution?, the state tax withholding informationthat displays when you request an IRA distribution. If you need specific information, please consult a tax advisor.

Regardless of whether you elect a withholding percentage for your IRA withdrawal, you are responsible for all federal, state, and localtaxes, as well as estimated tax payments and penalties, if any. Withdrawals before age 59½ may be subject to a 10% early withdrawal penalty.For more information, access the Retirement Investing Center in the Planning & Retirement tab and consult a tax advisor about your particularsituation.

Why is the federal tax withholding percentage online different from the percentage I previously elected?

If you elected a federal tax withholding percentage for a previouswithdrawal request you entered online, that percentage only applies to that particular withdrawal, since online withdrawalsare treated as one-time, unique requests. If you elected a federal tax withholding percentage as part of setting up regularly-scheduledwithdrawals using Fidelity's Personal Withdrawal Service (PWS), the withholding percentage is only applicable for the PWS withdrawals. Itdoes not apply to one-time withdrawals you request online.

What are the state tax implications of an IRA distribution?

State tax withholding laws on IRA distributions vary by state. For a Roth IRA, you can elect not to have state tax withheld if state tax withholding applies in your state of legal residence. Your state of legal residence is determined by the legal address you have on file with Fidelity. If you do not have a legal residence on file, Fidelity uses the state from your mailing address. Your state's tax regulations may require that Fidelity withhold state tax from your distribution if you have elected to have federal tax withheld.

When requesting an IRA distribution, the state tax withholding information and withholding options are displayed for your state of legal residence, based on your legal address on file with Fidelity. If not on file, the mailing address you have on file with Fidelity is used to determine which state's tax laws are applicable.

When requesting an IRA distribution by selling all shares in a mutual fund position held in an eligible mutual fund account, the withholding amount is an estimate. The estimated state tax is based on the mutual fund's last available closing price and does not take into account any applicable fees.

For IRAs other than Roth, your state's tax regulations may require that Fidelity withhold a portion of the gross IRA distribution (or withdrawal). State tax laws vary and, for some states, state tax withholding for IRA distributions does not apply. For Roth IRAs, state tax is not withheld unless you elect to do so and state tax withholding is applicable for your state. For some states, the state tax withholding information and options that apply for your IRA withdrawal may also depend on whether or not you have elected to have federal tax withheld.

For more information on state tax withholding requirements, refer to the information displayed on the Specify State Tax Withholding page when requesting an IRA distribution on Fidelity.com. If you need specific information, consult a tax advisor.

Whether or not you elect to have a portion of your withdrawal withheld, you are responsible for the full payment of any state or local taxes, federal income tax, and any penalties that may apply to your distribution. You may be responsible for estimated tax payments and could incur penalties if your estimated tax payments are not sufficient.

If I place a request for an IRA withdrawal after December 15, will my withdrawal be processed for the current or next year? For whatyear will this withdrawal be reportable?

The IRS refers to the date a withdrawal (distribution) is processed to determine the year to which it is applicable. The amount oftime it takes for an IRA withdrawal request to be processed varies by the withdrawal method selected (e.g., Electronic Funds Transfer, check,transfer to a non-retirement account).

If your IRA withdrawal affects your taxes or is intended to satisfy your minimum required distribution (MRD) for the current year, make sure that:

• You allow adequate processing time. Submit your online request by December 15thof the current year (March 15th for initial MRD)
• Your brokerage IRA Core account has sufficient funds to cover the withdrawal
• You are not requesting a second brokerage IRA withdrawal on the sameday, or if an earlier request is still pending
• You are not requesting a second IRA withdrawal from the same mutual fund ina mutual fund IRA when there is another request pending for the same mutual fund

If you are requesting a distribution after December 15, please call a Fidelity representative at 800-544-6666 to determine the best wayto process your IRA distribution to satisfy any applicable deadlines.

What is an early distribution?

A distribution from a traditional IRA prior to the age 59 1/2 is generally considered to be an early withdrawal. An early withdrawal from an IRA is potentially subject to a 10% excise tax penalty unless the distribution is rolled over or converted to another IRA within 60 days. When the early withdrawal is due to disability, or if you are the beneficiary on a deceased individual's IRA, distribution by death, the penalty may be waived. For more information, access Fidelity's online Retirement Investing Center and consult a tax advisor about your particular situation.

Other exceptions exist for early distributions due to:

• A series ofsubstantially equal periodic payments based on the owner's life expectancy
• Deductible medical expenses in excess of 7.5% of adjustedgross income
• Qualified first-time home buyer expenses (up to $10,000limit)
• Qualified higher education expenses
• An IRS levy against the account

Please call a Retirement Specialist at 800-544-6666 for more information.

What are Minimum Required Distributions?

Beginning the calendar year after the year you turn 70½, you are generally required to withdraw a minimum amount of money from your retirement accounts each year. This amount is called a minimum required distribution, or MRD. Note that you can always take more than the MRD amount.

You generally have to take MRDs from the following retirement accounts:

• Traditional IRAs
• Rollover IRAs
• SIMPLE IRAs
• SEP-IRAs
• Most Keogh accounts
• Most 401(k) and 403(b) plans

How do you calculate my Minimum Required Distribution for the year?

Your current year MRD calculation is determined by dividing your prior year year-end-balance by your life expectancy factor as indicated on either the Uniform Lifetime Table or Spousal Exception Joint Life Expectancy Table. The table used to calculate your MRD is indicated next to an asterisk at the bottom of the Minimum Required Distribution Estimate.

Your MRD is calculated once per year, on January 1st. The year end balance of your account(s) on which the MRD calculation estimate is based includes only assets in your Fidelity account on the last business day of the prior year. It does not include any "in transit' transfers or rollovers that were deposited in your account during the current year that should be considered part of the prior year-end balance and therefore included in the MRD calculation. It is your responsibility to include those balances in MRD calculations to accurately determine the full amount of MRDs required by the IRS.

How can I take the required distribution?

You can take your distribution in one withdrawal, or make withdrawals throughout the year. To set up scheduled, automated withdrawals use the “Automated Withdrawals” link, and follow the instructions. If you do not set up automated withdrawals, you can take your distribution anytime before the December 31 deadline; please allow enough time for any trades to settle before the last business day of the year. You can make a withdrawal from your IRA online, or request a withdrawal by phone or at a Fidelity Investor Center.

How are MRDs taxed?

MRDs are taxed as ordinary income for the tax year in which they are taken and will be taxed at your applicable individual federal income tax rate. MRDs may also be subject to state and local taxes. If you made non-deductible contributions to your IRA, you must calculate your MRD based on the total balance, but your taxable income may be reduced proportionately for the after-tax contributions. Please consult a tax advisor to learn more.

How much do I have to withdraw if I have more than one Fidelity IRA?

If you have multiple IRAs with Fidelity, look for the “MRD for all your Fidelity IRAs” total in the MRD bricklet. This total will include the required distributions from Traditional, Rollover, SIMPLE IRAs, and SEP IRAs. It will not include inherited IRAs, as different calculations apply to these accounts; or ROTH IRAs, as the distribution requirements do not apply to these accounts. It will also not include other Retirement Plan accounts and annuities.

How should I take my MRDs if I have multiple accounts?

If you have more than one IRA, you must calculate the MRD for each IRA separately each year. However, you may aggregate your MRD amounts for all of your IRAs and withdraw the total from one IRA or any combination of your IRAs. If you have qualified plan accounts in addition to your IRAs, you must calculate and satisfy your MRDs for IRAs separately from your qualified plan accounts. If you have more than one qualified retirement plan account, you must calculate and satisfy your MRD requirements separately for each qualified plan account. For example, if you have both a profit-sharing Plan and a 401(k), you must separately calculate and withdraw an MRD from each plan. Also, MRDs for inherited IRAs must be satisfied separately from your other IRAs.

What are the deadlines for taking MRDs?

You may withdraw your annual MRD in one distribution or make withdrawals periodically throughout the year, but the total annual minimum amount must be withdrawn by the deadline of December 31 (except for your first MRD, as explained below). Please allow enough time for trades to settle before the final business day of the year.

You generally have until April 1 of the year following the calendar year you turn 70½ to take your first MRD. This is known as your required beginning date, or RBD. In subsequent years, the deadline is December 31. If you turned 70 between July 1st of last year and June 30th of this year, you will be turning 70½ this year and will need to take your first MRD for this year.

Related Help Topics

• IRA Contributions
• Transferring Money or Shares