Withdrawing funds from your account

Can I take out my money?

The simple answer: yes. But what funds you’re withdrawing, when you’re withdrawing them, and why will affect whether you’ll have to face any taxes or penalties.

Your New York Secure Choice account is a Roth IRA and is designed to help you save for retirement over the long term — but we understand that each person’s situation is different. It’s your money, after all, and you can manage your account as you like.

What happens if I withdraw money?

If you choose to withdraw money from your account, you could incur penalties and owe taxes.

IRS criteria for withdrawals

Although you can withdraw your contributions at any time without taxes or penalties, the earnings on your contributions — that is, the interest and/or dividends on the money you have invested — are treated differently.

If you withdraw money and you don't meet the IRS criteria for a “qualified” distribution, you must include the earnings in your income for the tax year. If you withdraw money from your account before you turn age 59½ by requesting a “nonqualified” distribution, you’ll pay a 10% penalty on the earnings portion of your distribution.

You may wish to consult a tax advisor to be sure you understand the impact of any withdrawals you make.

Why is saving now so important?

The earlier you start saving for retirement, the more potential for your money to grow. With New York Secure Choice, your paycheck contributions could potentially grow into significant savings over time. Saving even a little now can potentially make a big difference later.

Can I move my account to another IRA?

Yes. You can transfer savings in your account to another IRA you own without incurring a penalty or paying taxes, as long as the transfer takes place between the accounts. Just remember that the IRS lets you make only one rollover in a 12-month period and this limit applies to all IRA types (both Traditional and Roth).