Withdrawal

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Withdrawal

A transaction in which a customer receives back money he/she had previously deposited at a bank, pension, or trust. When one makes a withdrawal on a pension or similar plan, it may carry a penalty depending on the pension's rules. For example, one must usually be of a certain age in order to make a withdrawal. There is rarely such a penalty when making a withdrawal from a bank. For instance, when one closes an account, the client makes a withdrawal on all the money he/she owns at that bank.

Withdrawal.

A withdrawal is money you take out of your banking, brokerage firm, or other accounts.

If you withdraw from tax-deferred retirement accounts before you turn 59 1/2, you may owe a 10% early withdrawal penalty plus any income tax that's due on the amount you've taken out.

In everyday usage, the term withdrawal is used interchangeably with distribution to describe money you take from your tax-deferred accounts, though distribution is actually the correct term.

References in periodicals archive ?
Eligible family members who decide to withdraw money from their retirement plans may do so through March 31, 2006.
For instance, if a deposition is set in the client's case before such time as the hearing on the attorney's motion to withdraw is to be held, the attorney cannot simply refuse to show up for the deposition.
530(d)(4)(C), if the beneficiary withdraws the excess funds and the earnings thereon before the first day of the sixth month of the following year (i.
Advisers should consider preparing QTIP trust instruments that allow the surviving spouse to compel the QTIP trustee to withdraw annually from the IRA all of the income earned on the IRA assets.
the beneficiaries waived their rights to withdraw the initial gift and to receive notices on their withdrawal rights over future gifts;
Sultan Hashim Ahmed, said Saddam had ordered him to withdraw all his troops from Erbil.
Defense attorney James Farley asked the judge to allow Montgomery to withdraw his plea, saying ``equity and fairness scream out for it in this case.
An employer generally cannot withdraw the nondeductible portion of a contribution (Rev.
Ventura Superior Court Judge Charles Campbell on Monday scheduled a June 3 hearing on Montgomery's motion to withdraw his guilty plea to charges that he voted as a council member on a matter involving a trash hauler from whom he had accepted a loan.
The first person in Ventura County sentenced under California's ``three strikes'' law is expected back in court today to seek a trial after an appellate court ruled he should have been allowed to withdraw a guilty plea to molestation charges.
The beneficiaries, who did not possess a substantial current or future economic interest in the trust corpus, had the right under the trust document to withdraw from the settlor's contributions to the trust an amount not exceeding the $10,000 annual limitation.
CHICAGO -- Nuveen Investments, a leading provider of diversified investment services to institutional and high net worth investors, today announced plans to withdraw the listing of its Nuveen California Municipal Value Fund from NYSE Arca, Inc.