E*TRADE IRA Withdrawal
If you need to make a withdrawal from an Individual Retirement Account (hopefully because you’ve
reached retirement age and not for any other reason), be aware that the process isn’t as simple as
making a withdrawal from a taxable securities or bank account. Brokerage firms may require you to
complete paperwork, either in hard copy or electronic format, so the distribution can be properly
reported for tax purposes. This article will examine the withdrawal procedures of E*TRADE.
First, the Government’s Policies
The IRS doesn’t want you taking money out of an IRA before age 59½. If you do, you may owe a
10% additional tax on the taxable portion of the early distribution unless an exception applies. On top of that, withdrawals from a Traditional, SEP, or SIMPLE IRA are generally taxable. Making a withdrawal from a SIMPLE IRA within 2 years after you first participated in the employer’s SIMPLE IRA plan increases the additional tax from 10% to
25%.
The government does grant a few exceptions for persons under 59½. Withdrawals made due to total and permanent disability or to pay certain health insurance premiums while unemployed will not incur the 10% penalty. Also permissible are withdrawals to fund higher education expenses or to make a first-time home purchase, subject to IRS limits and requirements.
Uncle Sam also allows IRA account holders to withdraw retirement assets for unreimbursed medical expenses if those costs exceed
7.5% of adjusted gross income.
Once you reach the required beginning age, IRA policies require you to start taking withdrawals. Called required minimum distributions (RMDs), these apply to Traditional, SEP, and SIMPLE plans. A Roth IRA does not have an RMD during the original account owner’s lifetime.
Under current rules, many IRA owners must start RMDs at
age 73, while the applicable age rises to
75 for people born in 1960 or later. The first RMD generally must be made by April 1st of the year after the year you reach your required beginning age, and later RMDs are due by December 31st of each year. Not taking a withdrawal on time can result in a
25% excise tax on the amount that should have been taken, or
10% if the mistake is corrected in time. An RMD can be taken in cash or securities, and eligible IRA owners can also use a qualified charitable distribution to satisfy all or part of an RMD.
The IRS has a worksheet on its website to figure the minimum amount that must be taken out each year.
E*TRADE, Schwab, and Fidelity have convenient calculators that can quickly figure the amount with less effort.
How to Withdraw Money from an IRA at E*TRADE
E*TRADE is the lone broker in our survey to offer a unique IRA called the Complete IRA. This retirement account is strictly for people over the age of 59½ who currently have a Traditional, Roth, Rollover, SEP, or SIMPLE IRA with the firm. Once one of these accounts is converted to the Complete version, all withdrawals are counted as IRA distributions. Withdrawals can be made using a debit card, writing a check, or using the broker’s free bill pay. Federal and state income taxes are not withheld from these transactions.
The first order of checkbooks is free, and E*TRADE doesn’t charge anything for check writing. The debit card is also free, and the account has no annual IRA fee or minimum balance requirement, although transaction fees, fund expenses, brokerage commissions, and service fees may apply. This seems like the best way to take money out of an IRA at E*TRADE if you’re over 59½.
The broker also has the traditional IRA distribution request form, which can be used for non-Complete accounts. The form can be submitted online or by completing the PDF version and mailing it to the broker. The form can be used for early withdrawals and required minimum distributions.
A one-time distribution is available, along with monthly, quarterly, semiannual, and annual withdrawals. Distributions can be taken by check, ACH, or wire. Outgoing wires cost
$25.
E*TRADE IRA Distribution Summary
Withdrawing funds from an IRA involves more red tape than a taxable account needs. Taking money out before age 59½ involves even more
hassle. Charles Schwab receives top honors for having a simple online form, while E*TRADE gets honorable mention for its Complete IRA.
Updated on 6/4/2026.
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