A distribution is the term the Internal Revenue Service uses for any withdrawal from your Individual Retirement Account. This article covers how to request one, what tax treatment to expect, and which timing rules apply.

A distribution is any movement of money or assets out of an Individual Retirement Account (IRA) to the account holder or a beneficiary. The Internal Revenue Service (IRS) treats the distribution event as a taxable event in most cases, though the specific tax treatment depends on the account type, the account holder's age, and whether certain conditions are met. This article covers the general framework. For type-specific rules, see the linked articles below.

To request a distribution from your Retired.com account, contact the Service Team to initiate. You will provide:

The Operations Team processes the distribution. Contact the Service Team to initiate.

The general rule depends on the account type:

If you take a distribution before age 59½, the IRS may apply an additional 10% early-withdrawal tax under Internal Revenue Code §72(t), on top of any ordinary income tax owed. Several exceptions to the 10% are defined in §72(t)(2). See "Early withdrawal — penalties and exceptions" for the full list.

We recommend consulting a tax advisor or attorney for guidance specific to your situation.

For Traditional, SEP, and SIMPLE IRAs, the IRS requires you to begin taking annual Required Minimum Distributions (RMDs) at a specific age — currently 73 for many account holders, with the exact age set by your year of birth under the SECURE 2.0 Act. Roth IRAs do not require RMDs during the original owner's lifetime. See "Required Minimum Distributions (RMDs) — rules and deadlines" for the full RMD framework.

Federal income-tax withholding rules apply to most IRA distributions. The default federal withholding rate is 10% for IRA distributions to a U.S. account holder, with the option to elect a higher rate, a lower rate, or no withholding (for non-rollover distributions). State withholding rules vary by state. Withholding is not the same as your final tax liability — it is a prepayment that is reconciled when you file your tax return.

You can take a distribution in the form of an asset rather than cash — for example, distributing a piece of real estate or a private investment directly to yourself. The asset is valued at its Fair Market Value on the date of distribution, and that value is the amount reported as the distribution. In-kind distributions are common for SDIRA holders whose assets are not easily liquidated.

Digital Trust, the custodian for your account, files IRS Form 1099-R annually for any distributions taken from your account during the prior year, with copies sent to you and the IRS. The 1099-R identifies the distribution amount, the taxable portion (where the custodian can determine it), and the distribution code that signals the type of event (normal, early, RMD, Roth qualified, conversion, and so on). You then report the distribution on your personal tax return using the 1099-R and any applicable supporting forms.

How long does a distribution take to process?
Cash distributions to a linked bank account typically clear within several business days after Retired.com receives a complete request. In-kind distributions involving title transfers, deeds, or third-party paperwork can take longer. Contact the Service Team for current timelines.

Can I cancel or reverse a distribution?
Once a distribution is processed and funds have left the account, it is generally not reversible. In some cases, an indirect rollover within the 60-day window can return the funds to a qualifying account — see "Direct vs. indirect rollovers — what's the difference?" — but the rollover rules are strict.

Do I have to give a reason for taking a distribution?
For a normal distribution after age 59½ or a Roth qualified distribution, no specific reason is required. For distributions that qualify for an exception to the 10% early-withdrawal tax (medical, education, first-time home, and others), you self-report the exception on IRS Form 5329 when you file your taxes.

Can I take a distribution from a Roth conversion before five years are up?
You can take the distribution, but the conversion-specific five-year rule may cause a 10% additional tax to apply to the converted amount even if you are over 59½. See "Roth IRA distributions — tax-free withdrawal rules" for how the Roth ordering rule and conversion clock interact.

Select "Start a Conversation" from the Chat menu or call us at 1-800-RETIRED