Withdrawing money from a retirement account is called a distribution.
Distributions from a Traditional IRA will be reported to the IRS as income to you and, as such, may be subject to income tax. In some cases, there may be IRS imposed penalties for IRA distributions. Under other circumstances (such as death, first time home purchase, disability, education, and attainment of age 59½) your Traditional IRA distributions may be free from IRS imposed penalties.
Distributions from a Roth IRA have complex tax implications at this time and we advise that you speak with your tax advisor, accountant, or attorney before proceeding with this type of transaction.
Required Minimum Distributions (RMD)
Beginning in the tax year in which you become 70½ years of age, the IRS requires that you begin taking a specified amount from your Traditional IRA each year. This is known as the Required Minimum Distribution (RMD). The amount you must "distribute" each year will vary based upon governmental tables. Our Financial Counselors are retirement specialists and can help you calculate your RMD if you so desire.