Interested in opening an account?

TD Ameritrade has been acquired by Charles Schwab. Now you’ll get access to thinkorswim® trading platforms and robust trading education at Schwab, along with great service, a commitment to low costs, and a wide range of wealth management and investing solutions.

Open an account at Schwab today. You can still open an account at TD Ameritrade and we’ll let you know when your account is ready to be moved in early 2024.

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

IRA Distribution Rules

Traditional and Roth IRA distribution rules differ significantly, so stay informed using our education and resources.

Generally, you should consider three aspects:

  • Early distributions
  • No-Penalty normal distributions
  • Required Minimum Distributions

 

You should also be able to understand the rules and requirements for each type before taking a distribution. See the table below.

IRA Distributions

Traditional

Roth

Penalty-free distributions:

Traditional

Begin at age 59 1/2

Roth

On contributions: Always available

On earnings/interest on contributions: Begin at age 59½ when IRA is 5+ years

Required minimum distributions:

Traditional

Begin at 72

Roth

RMDs not required

Distribution options for your IRA

TD Ameritrade provides several methods for distributing your IRA funds. You can set up automatic distributions, transfer funds to another account or transfer holdings. Find out the features and benefits of each option.

Take a one-time distribution or set up automatic distributions

Transferring funds from your TD Ameritrade account to your bank account is fast and easy. You can take a one-time distribution or set up automatic distributions from your IRA-for early distributions, normal distributions and RMDs.

Use funds directly from your account

If you have reached the age of 59½, you can write checks from your account to facilitate your distributions while managing your bills at the same time. Checks written from your IRA will be normal distributions from your IRA. A normal distribution is a penalty-free, taxable withdrawal.

Transfer assets between TD Ameritrade accounts

When taking required distributions, you may consider transferring funds from your Traditional IRA to a standard brokerage account. There may be additional requirements when transferring between different kinds of accounts.

Get in touch Call or visit a branch

Call us: 800-454-9272

175+ Branches Nationwide

Check the background of TD Ameritrade on FINRA's BrokerCheck