Quote:
Originally Posted by retiredguy123
I agree that proper terminology is important. But, the proper terminology is to call it a distribution, not a withdrawal. Withdrawal is not the proper terminology because you could have your IRA assets in more than one financial institution. You could withdraw IRA money from one institution and deposit it into the other institution. This can be done using a rollover or a direct transfer. But it would not qualify as an IRA distribution because the money is still in an IRA. RMD stands for "required minimum distribution". I have a Vanguard account, and when I make an IRA distribution, I don't "withdraw" money from Vanguard, I just transfer it from my IRA to the non-IRA portion of my Vanguard portfolio. I never withdraw money directly from Vanguard. If I want to spend money from Vanguard, I transfer it to my Truist checking account, and then I write a check.
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"Fidelity uses the terms "withdrawal" and "distribution" interchangeably to refer to the removal of funds from your account, including retirement accounts. Withdrawals can be made from various accounts, and the specifics of the process depend on the type of account and the type of withdrawal. For example, normal withdrawals from SIMPLE IRAs are treated as taxable income. "