Traditional, Rollover, or SEP IRA
In many cases, you'll have to pay federal and state taxes on your early withdrawal, plus a possible 10% tax penalty.
Before age 59½, the IRS considers your withdrawal (also called a "distribution") from these IRA types as an early withdrawal, triggering a possible tax penalty.
Taxes and penalties
In many cases, you'll have to pay federal and state taxes on your early withdrawal, plus a possible 10% tax penalty.
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
If any of these situations apply to you, then you may need to file IRS form 5329 to claim the exemption. 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
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.
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Roth conversions are also eligible to be withdrawn without penalty or taxes, as long as they have been in your Roth for 5 years.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 above, your Roth money would be withdrawn from your account in the following order:
- Contributions
- Conversions
- Earnings
Taxes and penalties
In many cases, you'll have to pay taxes plus a 10% penalty on your earnings. An early withdrawal of a Roth conversion could also be subject to a 10% recapture penalty, if it has not met the required 5 year aging period in your Roth IRA.
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
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 take a withdrawal from a SIMPLE IRA before age 59½, the IRS considers your withdrawal an early distribution.
Taxes and penalties
In many cases, you'll have to pay federal and state taxes on your early withdrawal. There may also be a 10% tax penalty. A higher 25% penalty may apply if you take a withdrawal from your SIMPLE within 2 years of your first contribution.
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
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). EFT Form (PDF)
- 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
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)
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