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Related to Withrawal: withdrawal method, Withdrawal syndrome


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
With his withrawal goes a proud record of having played in 65 previous majors.
Prosecutor Mark Giuliani told Newcastle Crown Court: "She targeted vulnerable and elderly victims and exploited her position to draw money from their accounts without permission." The 40-year-old mumof-two, who had worked at the bank for more than 20 years, made the unauthorised withrawals using her ID card and processed the transaction as if the customer was there.