How to Get Money Out of a Fidelity Retirement Account
Retirement accounts are designed to help individuals save for their golden years, but there may come a time when you need to access the funds. If you have a Fidelity retirement account and find yourself in a situation where you need to withdraw money, here’s a step-by-step guide on how to get money out of a Fidelity retirement account.
1. Assess Your Needs
Before you proceed with a withdrawal, it’s crucial to evaluate your financial situation and ensure that you have exhausted all other options. If you’re considering a withdrawal due to an emergency, make sure you have a clear understanding of the reason and the potential impact on your retirement savings.
2. Review Account Details
Log in to your Fidelity account and review the details of your retirement account. This will help you understand the available balance, any penalties that may apply, and the tax implications of the withdrawal.
3. Determine the Type of Withdrawal
Fidelity offers various types of withdrawals, including:
– Hardship Withdrawal: Available for unforeseen financial emergencies, such as medical expenses or home repairs.
– Substantially Equal Periodic Payments (SEPPs): A method for taking distributions from your retirement account if you are at least 59½ years old.
– Required Minimum Distributions (RMDs): If you are over 72 years old, you are required by law to take minimum distributions from your retirement account.
4. Complete the Withdrawal Request
Once you have determined the type of withdrawal you need, follow these steps to complete the request:
– Log in to your Fidelity account.
– Navigate to the “Withdrawals” section.
– Select the type of withdrawal you need and provide the necessary information, such as the amount and the reason for the withdrawal.
– Review the withdrawal details and confirm the request.
5. Review the Withdrawal Process
After submitting your withdrawal request, Fidelity will process it. The time it takes to process the withdrawal may vary, but typically, it takes a few business days. Once the process is complete, Fidelity will send the funds to your designated account.
6. Understand the Tax Implications
Withdrawing money from a retirement account may have tax implications. Here are some key points to consider:
– Early Withdrawal Penalties: If you are under 59½ years old, you may be subject to a 10% early withdrawal penalty.
– Taxes: Withdrawals from traditional retirement accounts are taxed as ordinary income.
– IRA Contributions: If you have made tax-deductible contributions to your IRA, the portion of the withdrawal that represents earnings will be taxed.
7. Reconsider Your Decision
Before finalizing your withdrawal, take the time to reconsider your decision. If you’re unsure about the long-term implications of the withdrawal, consult with a financial advisor or tax professional.
By following these steps, you can successfully withdraw money from your Fidelity retirement account. Remember to weigh the potential consequences of the withdrawal and consider alternative solutions before making a final decision.
