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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.


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 ?
736(a) treatment for payments made in consideration of unrealized receivables, if such payments were made to withdrawing partners who were general partners in a service partnership.
If, following dissolution, the business of the partnership is carried on by any of the partners in partnership form, and if the withdrawing partner is paid off out of the assets of the continued business by way of a liquidating distribution to him, Sec.
When you take distributions from a Roth IRA, you are first withdrawing your contributions, then earnings.
San Antonio, in explaining the reason for withdrawing the proposal, advised the board that he believed that the company should focus its efforts on resolving the outstanding accounting issues and improving the company's business and operations in order to achieve greater value for its shareholders.