IRA withdrawals

When you withdraw money from an IRA, it’s considered a distribution, which may incur taxes and penalties.

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Traditional IRA withdrawals

To make a withdrawal from your traditional IRA:

  1. Go to Account (person icon)→ menu (3 bars) or Settings (gear)
  2. In Transfers, select Transfer money
  3. Select the accounts you’d like to move money to and from, as well as the dollar amount
  4. To edit your tax withholding percentage select Federal/State taxes or select Amount you’ll receive
  5. Review and select Withdraw to complete your distribution

You can view your previous withdrawals anytime in Account History.

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Withdrawal rules

Traditional IRA

If you need to withdraw money from your traditional IRA before you’ve reached age 59 ½, you’ll typically pay a 10% penalty on top of the expected income taxes you’ll owe. Withdrawals after reaching age 59 ½ are generally taxed as ordinary income. Required minimum distributions begin at age 73 in 2023. In certain IRS-approved situations, you may take early withdrawals from your traditional IRA without penalty. Check out qualifying exceptions.

Roth IRA

Withdrawals of Roth IRA contributions are always tax-and penalty-free. However, any earnings withdrawn early could be subject to both taxes and penalties, unless you've reached age 59½ and met the 5 year holding period requirement or you meet a qualifying exception.

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Required Minimum Distributions (RMDs)

An RMD is the minimum dollar amount you must withdraw from your traditional IRA annually starting the year you reach age 73 to avoid tax penalties. You can always withdraw more than the required minimum if you want.

If you have multiple IRAs at different firms, you can satisfy your RMD from any combination of your traditional IRAs.


If you have a traditional IRA with Robinhood with an RMD amount of $1000, and a traditional IRA at ABC company with an RMD amount of $500, you could choose to withdraw $1,500 all from your Robinhood IRA. As long as your total RMD amount is removed, it can come from any combination of your traditional IRAs.

We’ll notify you if you have an upcoming RMD. While we don’t include RMD calculations as part of this notification, you can ask us for help with them.

How it's calculated

Your RMD amount changes each year and is calculated by taking the year-end balance of all your IRAs combined and dividing it by your IRS Life Expectancy factor. You can use the RMD calculator to calculate your RMD based on your closing December 31 balance of the prior year. For specific questions about your RMD, consult with a tax professional.


First-time eligible RMD customers have until April 1 of the year following the year in which you reach age 73 to take your first RMD. If you wait until the following year, you’re still required to take your second RMD by December 31 of that year.

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Tax information

1099-R reporting information

If you took a distribution from your traditional or Roth IRA (including Inherited traditional or Inherited Roth IRAs) in 2022, your Form 1099-R will be available on January 31, 2023 for this tax year detailing the previous years’ distributions.

For specific questions about your tax situation, we recommend consulting a qualified tax professional.

Tax withholding elections information

Federal tax withholding for traditional IRAs will default to 10% and a state tax withholding default will vary depending on the state. You can opt out, or choose a percentage between 1% and 99%, for your federal tax withholding and your options will vary for state tax withholdings depending on the state.

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Contents provided are for informational purposes only and don’t constitute tax or investment advice. For specific questions, you should consult a tax professional. Robinhood does not provide tax advice. Links to third party sites are being provided for informational purposes only.

The Robinhood IRA is available to any customer with a Robinhood brokerage account in good standing.

Reference No. 2696735
Still have questions? Contact Robinhood Support