How do I withdraw or distribute all cash to myself and close my account?

If you're looking to close your Self-Directed IRA (SDIRA) account and take a full cash withdrawal or distribution, it's important to understand that any distribution from an IRA is considered a taxable event. The funds you withdraw will be subject to applicable taxes based on your specific situation. Additionally, you will need to withdraw all funds from your account in order to close it.

Follow the steps below to initiate a full cash withdrawal and close your account:

Instructions to Close Your Account and Withdraw All Funds:

1. Log in to Your Online Account Begin by logging into your SDIRA account through the online portal.

2. Navigate to the Move Money Section From the Dashboard, click the Move Money button and choose Distribution.

3. Select Withdrawal Type Choose Full for the withdrawal type. This will ensure that the entire balance is withdrawn from your account.

4. Enter Withdrawal Amount Enter 1.00 only (without the dollar sign, just the amount with a decimal). This will ensure that any applicable fees are also withdrawn, and your account is fully emptied.

5. Choose Your Withdrawal Method

   • New: Select this option if you are withdrawing all funds and don't have any existing Bill Pay entries set up for distributions.
   • Funding Method: Choose either Check or Wire for your preferred method of payment.
     • If you select Check, you will need to enter your preferred delivery method (e.g., standard or expedited).
     • If you select Wire, you will need to provide your wire transfer details for the funds to be sent to your bank.

6. Supporting Documents No supporting documents are required for this type of withdrawal.

7. Review the Information Click the Review button to confirm that all the details entered are accurate.

8. Submit the Request Once you've reviewed everything, click Submit to process your withdrawal request. If any corrections are needed, click Back to make adjustments before submitting.

Follow-Up:

• Track the Status: After submitting your request, check back periodically to monitor the status of your withdrawal.
• Processing Time: Withdrawal requests can take up to 3-5 business days to process. Once the request is processed, the funds will be sent to you via the method you selected (Check or Wire), and your account will be closed.

Rollovers to a Qualified Plan:

If you decide to take a distribution but roll the funds into a qualified plan (such as another IRA or 401(k)) within 60 days, you will still receive a 1099-R form from AET, as this is considered a taxable distribution by the IRS. However, you can avoid taxes and penalties on the distribution if you complete the rollover within the IRS's 60-day requirement.

To prove that the funds were rolled over in compliance with IRS rules, you will need to provide a Form 5498 from the successor custodian (the new IRA or 401(k) custodian). This form will verify that the funds were received and deposited within the required time frame, allowing you to avoid taxation on the withdrawal.

Important Notes:

• Taxable Event: As with all IRA distributions, the funds you withdraw are considered taxable income, and you may be subject to taxes based on your withdrawal amount and tax situation. It’s a good idea to consult with a tax professional to understand the tax implications of your withdrawal.
• Account Closure: Once the funds are withdrawn, your SDIRA will be closed. You will no longer have access to the account unless it is re-opened.
• Personal Distribution: All IRA distributions must be made payable to the account holders name. Sending funds to another person, custodian, or investment would not be considered a Distribution. 

If you have any further questions or need assistance with your full withdrawal, rollover, or account closure, please don’t hesitate to reach out to our team. We’re happy to help!