What to know before you withdraw
"Normal" IRA withdrawals (an IRS term) start at age 59½, when you no longer pay early-withdrawal penalties. Depending on your IRA type, state and federal taxes may still apply.
Keep in mind: You're never required to take withdrawals from an IRA before age 73... but you should always factor any withdrawals you make into your overall retirement strategy.
Withdrawal considerations for each IRA type
Traditional, Rollover, or SEP IRA
Taxes and penalties
Normal withdrawals are treated as taxable income and generally are subject to federal and state taxes, but will not incur a 10% early withdrawal penalty.
Withdrawal options
- 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
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If you don't meet the requirements of a qualified withdrawal, your Roth money would be withdrawn from your account in the following order: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
- 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
SIMPLE IRA
Withdrawals from a SIMPLE IRA can be initiated using our separate form (PDF) or by calling us for assistance at 800-343-3548.
Taxes and penalties
Normal withdrawals from SIMPLE IRAs are treated as taxable income and generally are subject to federal and state taxes, but will not incur a 10% early withdrawal penalty.
Withdrawal options
- 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
What to expect
Traditional, Rollover, Roth, and SEP IRAs can be initiated online using the "Withdraw from your IRA" button. SIMPLE IRA distributions must be initiated using a separate form (PDF).
You'll be asked:
- How much do you want to withdraw?
- How much in federal and state taxes do you want withheld?
- How often do you want to make a withdrawal? (one time or recurring)
- How do you want to receive your money?
