How to Withdraw From a Rollover IRA


A rollover IRA is an IRA funded by assets from an employer-sponsored retirement savings plan. The reason it has to be designated "rollover IRA" is to notify the IRS that the high assets were accumulated in a plan with higher contribution limits and over the span of employment. There are no specific differences in withdrawing assets from a rollover IRA from any other IRA account.

Things You'll Need

  • IRA statement
  • Call the rollover IRA custodian or visit the office where your account was opened. Request "withdrawal" or "distribution" paperwork.

  • Fill out the paperwork making sure to note how much you want out and whether this is a one-time distribution or whether you are setting up a regular withdrawal program (i.e. a monthly income stream). Also note on the paperwork whether you want more than the automatic 20% federal withholding to be applied to the distribution.

  • Sign the paperwork and submit it. You may include your checking account information with some IRA custodians to have the distribution sent directly to your bank account.

  • Wait for the funds and confirm that the correct amount was distributed.

Tips & Warnings

  • Withdrawals prior to age 59 1/2 will be added to ordinary income and assessed a 10% tax penalty. There are some exceptions to this rule such as first time home purchase, college tuition or hardship distributions. Consult a tax adviser regarding whether or not you qualify for early distributions.

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