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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.
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that part of NATIONAL INCOME not spent by households on the CONSUMPTION of domestically produced goods and services. In the basic CIRCULAR FLOW OF NATIONAL INCOME MODEL, all the income received by households is spent on current consumption. In the extended circular flow of income model, some of the income received by households is saved, some of it is taxed and some of it is spent on imported goods and services. Thus, SAVINGS, TAXATION and IMPORTS constitute withdrawals or leakages from the income-spending flow. Compare INJECTIONS. See also PROPENSITY TO SAVE, PROPENSITY TO TAXATION, PROPENSITY TO IMPORT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
First Active (NI) 3 Year Guaranteed Windfall Fund 01232 245027 7.00% 3 years no withdrawals during term
Finally, if funds are withdrawn before five years from the date of the first contribution, the earnings on these funds are subject to regular income taxes and will be assessed the 10 percent penalty for early withdrawals.
If it's below the prevailing rates, the loan might be considered a disguised early distribution and could then be subject to the penalties for an early withdrawal.
If that happens, withdrawals will be taxed at a lower rate than the rate at which deductions for contributions were taken and the tax deferral feature will be enhanced.
New Delhi: The Employees Provident Fund Organisation made it mandatory to file online claims for provident fund withdrawals above Rs 10 lakh, taking another step towards becoming a paperless organisation.
A company contributing to a multiemployer pension plan can trigger three general types of withdrawals: complete, partial, and mass withdrawals.
The move is part of the nation's plan to tighten the country's capital controls as foreign currency withdrawals have increased in recent times.
The retirement fund body made it mandatory to file online claims for provident fund withdrawals above Rs 10 lakh.
IRA owners over the age of 70 1/2 are required to begin making regular withdrawals from their account, and a report by EBRI found that's the main reason withdrawals are made at all.
If there were such a thing as a "default" income planning strategy, systematic withdrawals might be it.