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 ?
Caveat: Although individuals may be eligible to withdraw money from their retirement plans as a result of Hurricane Katrina, their plans may not permit early withdrawals.
Therefore, until the court has allowed an attorney to withdraw from a case, the attorney must still represent the client.
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.
But Matz granted Campbell's own motion to withdraw, castigating Beard-Williams for faxing reporters a copy of a letter she'd sent to the judge criticizing her attorney.
2000-2 requires only that the surviving spouse have the power exercisable annually to withdraw the income.
We were asked by a federal judge to withdraw our resignations to de-escalate the situation.
The trust provided that, for 15 days after contributions of property to the trust, each of the seven beneficiaries had an unrestricted right to withdraw an amount not to exceed the annual exclusion.
Ferguson, 28, of Tarzana testified that she wanted to withdraw her plea, which she had entered in February, because it was made under pressure from her previous attorney, William Maxwell.
In this ruling, a trust was created for the benefit of nine grandchildren, granting each beneficiary the right to withdraw a portion of the value of the trust.
Mathews had wanted to withdraw from her plea bargain when she thought a sentence of 15 years to life was excessive, said Deputy District Attorney John Portillo.
Ascher is the second person offered the CEO job to withdraw since Joseph Drew quit in January under fire for his controversial handling of a contract award.
An employer generally cannot withdraw the nondeductible portion of a contribution (Rev.