When making a distribution from an IRA Account Management Type, you must define the type of distribution.
Distribution Rules
-
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
iraDistribution
isQUALIFIED
. -
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.
-
"QUALIFIED"
and"RMD"
iraDistribution
types are not subject to premature penalties. -
A
"QUALIFIED"
distribution is categorized by the following IRS Guidelines
Defining iraTaxWithholdings
iraTaxWithholdings
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
federalTaxPercentage
must be > 0.0001 and < 1
Argument | Type | Description | Required |
---|---|---|---|
| object | Object containing tax withholding rates on the IRA | No |
| number | Withholding percentage for federal taxes | No |
See the examples under Create New Redemption.