Are there penalties for withdrawing money from my IRA Account?

Yes.? Since IRAs are intended to provide income for retirement, and they provide tax benefits, there are penalties and taxes due on many withdrawals from IRA accounts. Please visit the FAQs section in the Retirement Focus area, under the heading ?Distributions? for details on withdrawals.

Once I have decided to take a withdrawal from my IRA, how do I go about it?

To take a withdrawal from your IRA, go to the Maintenance area in ?View Your Account? and scroll to the section titled Distributions. Here you will find a Distribution Form? ? Traditional or Rollover, Roth and Coverdell ESA (formerly Education IRA). ?Select the appropriate form to print, complete, sign and send to the address or fax number indicated on the form.

How will the funds be paid to me?

On the form you have a few options to choose from.?You can either have a check issued to you at the address on your account, or we can transfer the funds to a BUYandHOLD Individual account or a Joint account. In addition, if you choose, we can send the distribution to your bank account, as long as you attach a copy of a voided check to the distribution form and complete the appropriate area on the form.

Are taxes withheld when I request a distribution?

Yes.?If you request a distribution, BUYandHOLD will withhold money for taxes if you so choose.?

Generally, IRA distributions are included in taxable income, and the IRS is concerned that the proper income tax is paid on these distributions. So, as of January 1, 1983, federal tax withholding requirements applied to IRA distributions.

Because of this, all IRA custodians (BUYandHOLD for example) must offer IRA holders the opportunity to have taxes withheld at the time of distribution, similar to an employer?s withholding from a paycheck. This is a prepayment of taxes at the time of the distribution. If, at the time of tax filing, the individual has had more income tax withheld than their liability requires, they will receive a refund. If the individual?s liability exceeds the amount that they had withheld over the course of the year, they will owe additional taxes at filing time.

You choose your withholding option when you complete the distribution form. If you choose taxes to be withheld, BUYandHOLD will subtract the amount you request to be withheld from the total amount of the payment you request. Therefore, if you request $100 with 10% federal withholding, you will receive a check for $90.

BUYandHOLD will send the money withheld to the government with the appropriate reporting documentation.

The IRA holder will see the money withheld on the Tax Form 1099R that they will receive at the beginning of February, which is to be attached to their tax return.