What to know before you withdraw
Starting at age 59 ½, you can withdraw from any IRA without worrying about early withdrawal penalties—but state and federal taxes may still apply depending on your IRA type.
Keep in mind: You’re never required to take withdrawals from an IRA before age 73... but you should always factor any withdrawals you do make into your overall retirement strategy.
Traditional, Rollover, or SEP IRA
After age 59½, the IRS considers a withdrawal from these IRA types as a "normal" withdrawal, meaning penalty free. As with other IRA types, you’re not required to make a withdrawal until you turn age 73.
Taxes and penalties
Normal withdrawals are treated as taxable income and generally are subject to federal and state taxes, but not a 10% early withdrawal penalty.
Withdrawal options
Withdrawals can be initiated online using the "Withdraw from your IRA" button, with your choice of how to receive the money:
- Electronic funds transfer (EFT) to your bank (instructions must already be on file). Link your bank nowLog In Required
- Bank wire to your bank of choice
- Paper check sent via US Mail
- Move cash to a Fidelity non-retirement account
- Move shares in-kind to your Fidelity non-retirement account (must be completed with a representative by calling 800-544-6666)
Roth IRA
A Roth IRA allows you to withdraw your contributions at any time—for any reason—without penalty or taxes. Better yet, if you’re 59½ or older AND you've had your Roth for 5 years, you may be able to take a tax-free withdrawal of both contributions and earnings.
For example: If you contributed $12,000 over 2 years and it has grown to $13,200, you can take out the original $12,000 without taxes and penalties. However, the $1,200 of growth would incur taxes and penalties until your Roth is 5 years old.
Qualified Roth withdrawals
"Qualified" withdrawals (also called "qualified distributions") from a Roth means you get your money tax free and penalty free. For your withdrawal to be considered qualified, you need to own your Roth for 5 years AND you must be withdrawing under any of the following circumstances:
- Age 59½ or older
- A first-time home purchase (up to $10,000)
- A death or disability
Non-qualified Roth withdrawals
If you don’t meet the requirements of a qualified withdrawal above, your Roth money would be withdrawn from your account in the following order:
- Contributions
- Conversions
- Earnings
Taxes and penalties
Taxes on earnings depend on the type of withdrawal you're doing: qualified or non-qualified. Generally, federal and state tax would apply only on the earnings portion if your Roth IRA has not aged 5 years.
If you meet the requirements for a qualified withdrawal from your Roth account, your withdrawal is tax free.
If the distribution from your account is a non-qualified withdrawal, any earnings included in withdrawal would be taxable income and subject to federal and state taxes.
Withdrawals over age 59½ are not subject to the 10% early withdrawal penalty.
Always consult your tax advisor about your specific situation.
Withdrawal options
Withdrawals can be initiated online using the "Withdraw from your IRA" button, with your choice of how to receive the money:
- Electronic funds transfer (EFT) to your bank (instructions must already be on file). Link your bank nowLog In Required
- Bank wire to your bank of choice
- Paper check sent via US Mail
- Move cash to a Fidelity non-retirement account
- Move shares in-kind to your Fidelity non-retirement account (must be completed with a representative by calling 800-544-6666)
SIMPLE IRA
When you withdraw from a SIMPLE IRA after age 59½, the IRS considers your withdrawal a normal distribution, meaning penalty free.
Taxes and penalties
Normal withdrawals from SIMPLE IRAs are treated as taxable income and generally are subject to federal and state taxes, but not a 10% early withdrawal penalty.
Withdrawal options
Withdrawals from a SIMPLE IRA can be initiated using our separate form (PDF) or by calling us for assistance at 800-343-3548. You'll have the following choices of how to receive your money:
- Electronic funds transfer (EFT) to your bank (instructions must already be on file). Link your bank nowLog In Required
- Bank wire to your bank of choice
- Paper check sent via US Mail
- Move cash to a Fidelity non-retirement account
- Move shares in-kind to your Fidelity non-retirement account (must be completed with a representative by calling 800-544-6666)
What to expect when initiating a withdrawal
Withdrawals can be initiated online for Traditional, Rollover, Roth and SEP IRAs using the "Withdraw from your IRA" button. For SIMPLE IRA distributions, please use our separate form (PDF) or call us for assistance at 800-343-3548.
You'll be asked:
The amount you're going to withdraw
The amount of federal and state taxes you'd like withheld, if any
Frequency of withdrawal (one time or recurring)
You'll also choose how to receive your withdrawal:
Electronic funds transfer (EFT) to your bank (instructions must already be on file) Link your bank nowLog In Required
Move shares in-kind to your Fidelity non-retirement account (must be completed with a representative by calling 800-544-6666)
Move cash to a Fidelity non-retirement account
Paper check sent via US Mail
Bank wire to your bank of choice
Learn more
How to keep your retirement withdrawals from getting eaten up by taxes
Key points to know and how much you can expect to pay.
- How much tax will you pay on withdrawals?
- What if you withdraw money early?
- Which type of IRA is better?
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