Normal withdrawals from an IRA

Over age 59½? You're now free to withdraw from any kind of IRA without penalty. But before you do, get to know your IRA's specific tax rules below to make the smartest decision for yourself—whether you're retired or just need extra cash.


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Back to all IRA withdrawals

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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.

Normal withdrawal from a Traditional, Rollover or SEP IRA

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Normal withdrawal from a Roth IRA

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Normal withdrawal from a SIMPLE IRA

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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.


Withdraw from your IRALog In Required


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.


Withdraw from your IRALog In Required


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:

  1. Contributions
  2. Conversions
  3. 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 icon

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:

cash in hand
The amount you're going to withdraw
tax document
The amount of federal and state taxes you'd like withheld, if any
clock with arrow
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

bank
Bank wire to your bank of choice

writing a check
Paper check sent via US Mail

paper bill
Move cash to a Fidelity non-retirement account

two people talking about money
Move shares in-kind to your Fidelity non-retirement account (must be completed with a representative by calling 800-544-6666)

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?

View full article
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Want to retire early—and not risk your future?

If you're in your 50s and want to retire early, you'll need to have a plan along with several key financial building blocks in place. Learn more about:


  • Increasing your lifetime Social Security benefit
  • The risk of running out of money
  • 3 ways to help bridge an income gap to Social Security
  • Planning ahead

View full article

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FAQs

  • Where can I view my tax forms for my retirement accounts?
    You can access your available tax forms and find out when to expect additional forms here.
  • What is a Qualified Charitable Distribution (QCD)? Am I eligible for a QCD?

    A qualified charitable distribution (QCD) is a direct transfer of money from an IRA to a 501(c)(3) charitable organization that is eligible to receive tax deductible contributions.

    You must be at least 70 ½ years old at the time you request a QCD. If you process a distribution prior to reaching age 70 ½, the withdrawal will be treated as taxable income. Learn more.

  • Can I transfer my IRA from another institution?
    Yes, visit IRA Transfer for a quick overview of the online process.
  • Can I roll over my old 401(k) from a previous employer to my Roth or Traditional IRA?
    Generally, yes. Contact our rollover specialists, and they'll guide you through the entire process—from beginning to end. Call 800-343-3548 to get started.
  • Are normal withdrawals eligible to be rolled back into an IRA?

    Once within a rolling 12-month period, the IRS allows you to roll funds back into an IRA after you have  withdrawn them. This must be done within 60 days of your withdrawal.

    Keep in mind, if you had taxes withheld when you withdrew from your IRA, those cannot be reversed. If you want to put the gross amount of your withdrawal, net withdrawal amount and tax withholding amount back into your IRA within 60 days, you would need to pay/deposit the withheld amount out of pocket and then file with the IRS to get the taxes refunded to you the following year.

    Also, consider that if you have multiple IRAs, that may be held with different firms, you can withdraw from one and roll funds back into one of your other IRAs even if the account you roll into is held at another firm.

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