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 ?
You can withdraw up to $10,000 from a traditional IRA without penalty for the purpose of buying a first-time home.
"The decision to withdraw the case was taken on good intentions", Chandy said.
Thailand has yet to announce whether it will withdraw its own troops.
But Mrs Pearcy said she would not withdraw the petition, and demanded to know what the council was going to do to resolve the road safety issue.
Speaking on the same occasion, the Zambian minister announced his country's decided on March 29, 2011 to withdraw its recognition of the so-called SADR.
Sakhi Ahmad, 55, was one among 50 people standing in a queue to withdraw money from the Kabul bank.
Ban was quoted by AN NAHAR as saying that the Israeli government has accepted his request to withdraw from al-Ghajar.
For Frank Congemi, the essence of retirement planning is earning more for clients than they withdraw. He is a registered financial gerontologist in Forest Hills, N.Y., and Deerfield Beach, Fla.
With a Roth, you can withdraw all your money 100% tax-free at age 59 1/2.
Intense lobbying the by Galway hurling board in the aftermath of Loughnane's decision to withdraw his name from the contest led to Murphy and Silke withdrawing.
According to KETRA Section 101, affected individuals may be able to withdraw up to $100,000 from an IRA, Sec.
Earlier in February, the primates' meeting had asked both Canadian and American churches "voluntarily withdraw" from the ACC; both churches decided to send their delegates to "attend but not participate" in the meeting.