ARTICLE TAKEAWAYS
Participants with a Capital Bank and Trust Company (CB&T) SIMPLE IRA can request a distribution from their account online or by contacting us.
Participants in other plans, including SIMPLE IRA Plus plans, should use their plan ID to determine the appropriate URL to access their account
You can distribute money from your SIMPLE IRA at any time. However, SIMPLE IRA distributions are taxable and can be subject to tax penalties. If you are under the age of 59½ and no exception applies, it is considered an early distribution and subject to the 10% early distribution penalty. The penalty increases to 25% if you have not participated in the plan for at least two years. If you are age 59½ or over, distributions are considered normal distributions and are not subject to the early distribution penalty.
The total amount of distributions, including any federal or state income tax withheld, are reported on Form 1099-R, available in late January.
The early distribution penalty does not apply to certain distributions made before age 59½. These exceptions are referred to as 72(t) provisions because they fall under Internal Revenue Code Section 72(t).
Consult a tax advisor for details and qualification requirements. Most distributions made before the age of 59½ are reported on Form 1099-R as “Early distribution, no known exception.” When the IRA owner files their taxes, they can report if an exception applied.
One-time distributions can be processed online and by phone. You can also make a request by completing the IRA Single Distribution Request (PDF).
You can add your bank account to receive distributions via automated clearing house (ACH) by completing the Add/Update Bank Information form (PDF). Learn more at Linking a bank account for investments and withdrawals.
Expedited delivery of a check to the address on file is also available for an additional fee.
Note: Distributions greater than $125,000 must be submitted in writing with a signature guarantee.
The Internal Revenue Service (IRS) requires SIMPLE IRA participants to begin taking money annually from their account when they reach age 73,* even if they are still making and receiving contributions.
Your RMD must be calculated separately for each IRA you own. However, you can withdraw the total amount from one or more of your IRAs, including your SIMPLE IRA. Review Required minimum distributions for additional information.
You can set up a recurring automatic RMD by completing the Required Minimum Distribution (RMD) Request (PDF). As custodian, CB&T will calculate your RMD using the applicable life expectancy factor, based on your account’s beneficiary, and can send the distribution to your bank account via ACH or as a check annually.
*The SECURE 2.0 Act increased the age when RMDs must begin from 72 to 73, effective for individuals turning 72 on or after January 1, 2023. If you reached age 72 before this date, you are still required to take RMDs.