If you’d like to request a distribution (withdrawal) from your Guideline IRA, you should first confirm the type of distribution you would like. Some types of distributions may result in IRS penalties, which may affect your decision.
From your Guideline IRA, you have the choice to distribute funds to yourself or transfer/rollover your funds to another IRA or qualified retirement plan with a different provider.
How to initiate your distribution
To start the distribution process, click on your name in the upper-right corner of your Guideline dashboard. From the drop down menu, select the “Transfers” button, then click the “Start a transfer” option.
Cash distribution to you
After initiating the transfer, select the “Withdraw cash” option and hit “Start.” You will then be presented with the following steps:
Verify your personal information and click “Save and continue.” After your information has been verified, you will be asked to give a reason for withdrawing your funds. Feel free to select one of the given options or write your own reason in the box provided.
Next, select the IRA account from which to withdraw the funds. Then, select the type of withdrawal you prefer based on the options available. You can choose to do a partial or full withdrawal. Make sure to save and continue.
Review and complete the federal and state withholding elections for the distribution. If your state does not have applicable income tax, you will only have to make an election for the federal withholding.¹
Finally, you’ll be taken to a Review screen to confirm the information for the distribution. You can submit your request or go back and make updates, if needed.
Once the request is finalized, you will receive a confirmation email. Please note, it generally takes 2-3 weeks for requests to process and an additional 7-10 business days for the check to be mailed.
For cash distributions, the check will be mailed to your address on file.
Direct rollover and transfer request
To complete a direct rollover, select the “Move funds to another financial institution” option,² then hit “Start.” You will then be presented with the following steps:
Verify your personal information and click “Save and continue.” After your information has been verified, you will be asked to give a reason for transferring or rolling over your money. Select one of the given options or write your own reason in the box provided.
Select the IRA you wish to transfer or rollover funds from. You can choose to do a partial or full transfer/rollover. Make sure to save and continue.
Next, select the account type and complete the check details for your new financial institution. You’ll need to provide the following information:
Financial institution name: Name of the institution where the funds are going
Account type:³ Type of account you are transferring or rolling over to (e.g., IRA, 401(k), etc.)
Check payable to: How the check should read (e.g., Fidelity FBO Jon Smith)
Memo line: Any additional details the other financial institution is requiring
Finally, you’ll be taken to a Review screen to confirm the information for the transfer or rollover. At this point, you can submit your request or go back and make updates if needed.
Once the request is finalized, you will receive a confirmation email. Please note, it generally takes 2-3 weeks for the request to process and an additional 7-10 business days for the check to be mailed.
For a direct transfer or rollover, the check will be mailed to your address on file. You will need to forward the check to your new financial institution.
¹ If your request is going to a foreign address, based on your citizenship, you will need to upload form W-8BEN or W-9 via the Shared Files folder within your Guideline account. In addition, there may be mandatory federal withholding applied to your distribution.
² The rollover method described herein is not a taxable event. It is reported to the IRS as a direct rollover, and you will receive a 1099-R with a code G in Box 7 indicating the direct rollover.
³ If you are requesting a transfer to another IRA account, you will need to provide us with a Letter of Acceptance from the new financial institution and upload it to your Shared Files folder.
This article is for informational purposes only and is not to be construed as tax advice. For more information, consult a qualified tax advisor.