TD Ameritrade

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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.

The SECURE Act brings changes in 2020 to retirement rules and required minimum distributions (RMDs)

If you turn 70½ after December 31, 2019, you can now wait until you turn 72 to begin taking RMDs from your retirement account. There are more changes that may impact your retirement savings. We are updating our website to reflect these developments. Learn more about the SECURE Act and retirement changes.

IRA Distributions



Penalty-free distributions:

Begin at age 59½

On contributions: Always available

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

Required minimum distributions:

If you turned 70½ prior to January 1, 2020: Begin at 70½
If you turn 70½ after January 1, 2020: Begin at 72

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.

Check the background of TD Ameritrade on FINRA's BrokerCheck