Traditional and Roth IRA distributions

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.