Early withdrawals from your IRA

If you're under age 59½ and need to withdraw from your IRA for whatever reason, you can—but it's important to know your potential taxes and penalties, along with possible exceptions and other options for cash.

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View other withdrawal options

Before age 59 ½, the IRS considers money you take from your IRA as an "early" withdrawal and, depending on your IRA type, may include:

An IRS early-withdrawal penalty of 10%, along with state and federal income taxes

Keep in mind: Any withdrawals you make should be factored into your overall retirement strategy.

Withdrawal considerations for each IRA type

Traditional, Rollover, or SEP IRA

Exception

You may be able to avoid the 10% tax penalty if your withdrawal falls under certain exceptions. The most common exceptions are:

A first-time home purchase (up to $10,000)
A birth or adoption expense (up to $5,000)
A qualified education expense
A death, disability or terminal illness
For health insurance (if you are unemployed)
Some medical expenses

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

Withdraw from your IRALog In Required

Roth IRA

A Roth IRA allows you to withdraw your contributions at any time—for any reason—without penalty or taxes.

For example: If you contributed $12,000 over 2 years and your Roth IRA 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 unless your Roth is 5 years old AND you meet the requirements of a qualified withdrawal.

Roth conversions are also eligible to be withdrawn without penalty or taxes, as long as they have been in your Roth for 5 years. Keep in mind, if you have done more than one conversion, each one has to satisfy its own 5 year aging period.

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 must:

own your Roth for 5 years AND 
withdraw under one of the following circumstances:
Age 59½
First-time home purchase (up to $10,000)
Disability
Death

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

Exceptions

You may be able to avoid the 10% tax penalty if your withdrawal falls under certain exceptions. The most common exceptions are:

A first-time home purchase (up to $10,000)
A birth or adoption expense (up to $5,000)
A qualified education expense
A death, disability or terminal illness
For health insurance (if you are unemployed)
Some medical expenses

If any of these situations apply to you, then you may need to file IRS form 5329 to claim the exception. For a full list of exceptions, see IRS PUB 590b at www.irs.gov. 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

Withdraw from your IRALog In Required

SIMPLE IRA

Exceptions

You may be able to avoid the 10% and 25% tax penalties if your withdrawal falls under certain exceptions. The most common exceptions are:

A first-time home purchase (up to $10,000)
A birth or adoption expense (up to $5,000)
A qualified education expense
A death, disability or terminal illness
For health insurance (if you are unemployed)
Some medical expenses

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

Frequently asked questions

How will my IRA withdrawal be reported to the IRS?

Your withdrawal will be reported on IRS Form 1099-R.
When will I receive a tax form for an IRA withdrawal?

A 1099-R tax form will be issued to you, either by mail or electronically via Fidelity.com by mid to late February the year following the year you took your withdrawal.
Are there any other ways I could try to avoid the 10% penalty for early withdrawal?

You can find a full list of exceptions to the 10% withdrawal penalty in IRS PUB 590b at www.irs.gov.Opens in a new window Always consult your tax advisor about your specific situation.
Is there a way to withdraw from my IRA if I retired early?

The IRS allows IRA owners to receive withdrawals from your Traditional IRA that are part of a series of substantially equal payments over your life (or your life expectancy) without having to pay the 10% additional tax, even if you receive such withdrawals before you are age 59½. You must use an IRS-approved withdrawal method and you must continue withdrawals for the required time period. Refer to IRS PUB 590b at www.irs.govOpens in a new window for additional detail. Always consult your tax advisor about your specific situation. You can estimate how much you will be eligible to withdraw based on the annuitization and life expectancy substantially periodic payment methods using our calculatorOpens in a new window.
Are early 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.