Traditional and Roth IRA distributions

Before you get started

Requests to distribute from your Capital Bank and Trust Company (CB&T) IRA(s) are generally processed on the same business day. Requests received after the close of the New York Stock Exchange are processed at the next business day’s price per share. Consider talking to your financial professional before taking a distribution. They can offer advice and help you make decisions that support your long-term financial plan.

Things to consider

  • Distributions for owners under age 59½ are considered early distributions and may be subject to an early-distribution penalty unless an exception applies.
  • IRA distributions are tax-reportable on Form 1099-R, which is typically sent by the end of January.
  • Distributions sent to a bank account via Automated Clearing House (ACH) are typically deposited into your bank account within 3 business days.
  • Distributions sent via check are generally mailed the business day after they are processed.

 

Popular tasks

Take money out

You can take a one-time distribution from your IRA account online. Go to your account and click Sell.

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Required minimum distribution (RMD)

Take a one-time RMD or set up recurring automatic RMD payments from your traditional IRA.

Required minimum distributions arrow_forward

Move your CB&T IRA

Move your IRA from a CB&T IRA to another trustee/custodian.

IRA outgoing rollovers and transfers arrow_forward

Automatic distribution plan

Set up an automatic distribution plan from your IRA.

IRA Automatic Distribution Request (PDF) arrow_forward

Link your bank account to easily make withdrawals from your account at Capital Group

To link your bank account for withdrawals, complete the Add/Update Bank Information form.

COMPLETE FORM BANK GUIDELINES AND POLICIES

Common questions

Checks are mailed the business day after the request is processed and generally delivered by the post office within 7 days. 

Distributions via ACH may take up to 3 business days to be deposited into your bank account.

You have 60 calendar days from the date you receive the distribution to reinvest all or part of the money back into an IRA as a rollover. The Internal Revenue Service (IRS) allows one rollover per owner per consecutive-12-month period.

After 60 days, the reinvestment is considered a personal contribution and is subject to traditional IRA limits and deadlines.

Note: The right of reinvestment policy allows money to be reinvested back into the same account, into the same fund or another American Fund within 90 days after the date of the distribution without paying a sales charge. You must indicate the money represents a reinvestment.

Distributions to IRA owners under age 59½ are considered early distributions. Early distributions are subject to IRA taxes, if applicable, plus a 10% additional tax penalty unless an exception applies.

Distributions are reported on Form 1099-R. It’s the owner's responsibility to determine the taxable amount.

Note: Roth IRA distributions from earnings are tax-free if the initial contribution to the account was made at least 5 years ago.

Distributions to IRA owners age 59½ or over are considered normal distributions and therefore not subject to IRS early-distribution penalties.

Distributions are reported on form 1099-R, and it’s the owner's responsibility to determine the taxable amount.

Note: Roth IRA distributions from earnings are tax-free if the initial contribution to the account was made at least 5 years ago.

IRA distributions are reported on Form 1099-R, which is available in mid to late January.

Form 1099-R is provided only for accounts that had distributions for the applicable year.

Contact us

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call (800) 421-4225
This material does not constitute legal or tax advice. Investors should consult with their legal or tax advisors.
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