Supported Distribution Types

What types of IRA distributions does Webull support?

Webull supports the following retirement account distribution types:

• Premature
• Disability
• Excess contributions (before or after the tax deadline)
• Qualified/Normal

Please consult a licensed tax professional to determine which type of distribution applies to your situation.

What is a premature distribution?

A premature distribution is a withdrawal made before reaching age 59½. These are typically subject to:

• A 10% early withdrawal penalty.
• Ordinary income tax on the amount withdrawn.

Exceptions may apply based on IRS rules.

What qualifies as a disability distribution?

Disability distributions are taken due to permanent disability and require supporting documentation. If approved:

• The 10% early withdrawal penalty is waived.
• Ordinary income tax may apply.

A licensed tax professional can help determine if you meet IRS disability qualifications.

What is considered an excess contribution?

An excess contribution occurs when you contribute more than the IRS annual limit to your IRA or 401(k). This may happen due to:

• Contributions over the limit.
• Ineligible rollovers.
• Employer or spousal excess contributions.

What happens if I don’t correct an excess contribution?

If not corrected by the IRS tax filing deadline (including extensions), the excess may incur a 6% excise tax for each year it remains in the account.

How do I remove an excess contribution?

To correct an excess contribution:

• Before the tax deadline: Remove the excess and any Net Income Attributable (NIA).
• After the tax deadline: An excise tax may apply, and additional reporting is required.

Visit the Taking a distribution page for complete steps and required forms.

What is a qualified or normal distribution?

These are withdrawals made after age 59½ or under another IRS-qualified circumstance. They are generally:

• Not subject to the 10% early withdrawal penalty.
• Still subject to ordinary income tax in most cases.

How do I submit a distribution request?

• Premature and Qualified/Normal Distributions: Submit through the Webull app, website, or desktop platform.
• Disability or Excess Contribution Distributions: Require submission of an IRA Distribution Form, available on the Taking a Distribution page.

Webull Financial does not offer tax advice. Any integration with third-party tax software is provided for informational purposes only. For any questions about taxes, including how to file, please contact a tax professional.