Withdrawal

(redirected from withdraws)
Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia.
Related to withdraws: at least, call for

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 ?
Generally, the beneficiary may withdraw fund earnings tax free if the amounts do not exceed the QEEs incurred for that year.
CHICAGO -- Fitch Ratings withdraws the ratings on the following classes of Northwest Airlines Enhanced Equipment Trust Certificate (EETC) due to a lack of sufficient information to maintain the ratings.
CHICAGO -- Fitch Ratings withdraws the ratings on the following classes of Atlas Air Enhanced Equipment Trust Certificate (EETC) securities due to a lack of sufficient information to maintain the ratings.
NCA Withdraws Pacific Exchange Listing, Retains New York Stock Exchange Listing