When making a distribution from an IRA Account Management Type, you must define the type of distribution.
If the client is < 59.5 years old (21,720 days), the redemption will have a penalty attached to it for 10% of the notional value, unless the
If the client is > 59.5 years old (21,720 days) and < 70.5 years old (25,730 days) no penalty will be attached to the redemption.
All penalties and tax withholdings are set on the gross redemption amount.
iraDistributiontypes are not subject to premature penalties.
"QUALIFIED"distribution is categorized by the following IRS Guidelines
DriveWealth allows partners to pass in a tax withholding percent when creating a Redemption request.
- All penalties and tax withholdings are set on the gross redemption amount
federalTaxPercentagemust be > 0.0001 and < 1
Object containing tax withholding rates on the IRA
Withholding percentage for federal taxes
See the examples under Create New Redemption.