Traditional and Roth IRA distribution rules differ significantly, so stay informed using our education and resources.
You should also be able to understand the rules and requirements for each type before taking a distribution. See the table below.
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.
| Traditional | Roth |
---|---|---|
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 | RMDs not required |
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.
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.
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.
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.
If you request a distribution from your Individual Retirement Account (IRA) and you do not make an election regarding state tax withholding, your state of residence may require withholding at a statutory minimum rate. This information is provided to help you understand state income tax withholding requirements for IRA distributions. TD Ameritrade does not provide tax advice and cannot guarantee accuracy of state tax withholding information as state laws are subject to change and interpretation.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld regardless of federal income tax election, unless you elect not to withhold. If you make no election, California requires that withholding be taken at the minimum rate of 10% of federal withholding election.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
Connecticut requires state income tax for all distributions. If you make no election, Connecticut requires that withholding be taken at the minimum rate of 6.99% on distributions from retirement accounts.*
*The state of Connecticut requires 6.99% tax withheld on distributions from retirement accounts. Residents can choose to have a smaller percentage withheld, or opt out of withholding entirely, by submitting a new distribution form and a Connecticut Form W-4P. The forms can be mailed to us at the address shown at the top of the distribution form, or faxed to us at 866-468-6268. Please note that reducing or eliminating this withholding may subject you to underpayment penalties. We suggest you consult with a tax-planning professional for more information.
State income tax will be withheld regardless of federal income tax election, unless you elect not to withhold. If you make no election, Delaware requires that withholding be taken at the minimum rate of 5.00%.
If electing a total distribution, you must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, District of Columbia requires that withholding be taken at the minimum rate of 8.95%.
If electing a partial distribution, State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
You must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, it will be withheld at the minimum rate of 5.00%.
State income tax will be withheld regardless of federal income tax election, unless you elect not to withhold. If you make no election, Kansas requires that withholding be taken at the minimum rate of 5%
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage. You cannot elect less than 5% if you choose to withhold.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
You must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, Maine requires that withholding be taken at the minimum of 5.00%.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage. You cannot elect less than $5 if you choose to withhold.
You must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, it will be withheld at the maximum rate of 5.1%.
Michigan requires state income tax for all distributions. If you make no election, Michigan requires that withholding be taken at the minimum rate of 4.25% on distributions from retirement accounts.*
*The state of Michigan requires 4.25% tax withheld on distributions from retirement accounts. Residents can choose to have a smaller percentage withheld, or opt out of withholding entirely, by submitting a new distribution form and a Michigan Form W-4P. The forms can be mailed to us at the address shown at the top of the distribution form, or faxed to us at 866-468-6268. Please note that reducing or eliminating this withholding may subject you to underpayment penalties. We suggest you consult with a tax-planning professional for more information.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage. You cannot elect less than $10 if you choose to withhold.
Premature distributions have voluntary withholding elections with no minimums. State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
All other distributions you must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, it will be withheld at the minimum rate of 5%.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage. You cannot elect less than $10 if you choose to withhold.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage. You cannot elect less than $5 if you choose to withhold.
North Carolina requires state income tax for all distributions. If you make no election, North Carolina requires that withholding be taken at the minimum rate of 4.00% on distributions from retirement accounts.†
**The state of North Carolina requires 4.00% tax withheld on distributions from retirement accounts. Residents can choose to have a smaller percentage withheld, or opt out of withholding entirely, by submitting a new distribution form and a North Carolina Form NC–4P. If your distribution is an eligible rollover distribution, you do not have the option of electing not to have State income tax withheld from the distribution. The forms can be mailed to us at the address shown at the top of the distribution form, or faxed to us at 866-468-6268. Please note that reducing or eliminating this withholding may subject you to underpayment penalties. We suggest you consult with a tax-planning professional for more information.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
You must elect to withhold state income tax when federal income tax is withheld from your distribution. If you do not make an election, Oklahoma requires that withholding be taken at the minimum rate of 5.00%.
State income tax will be withheld regardless of federal income tax election, unless you elect not to withhold. If you make no election, Oregon requires that withholding be taken at the minimum rate of 8.00%.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld regardless of federal income tax election, unless you elect not to withhold. If you make no election, Vermont requires that withholding be taken at the minimum rate of 30% of federal withholding election.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage.
State income tax will be withheld only if you instruct us to do so. If you want state income tax to be withheld, you must indicate the amount or percentage. You cannot elect less than $5 if you choose to withhold.
State income tax will not be withheld from your distribution, even if you elect to withhold state income tax.
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