Supported Distribution Types

At Webull, you can choose from several distribution types. For guidance on which option is best for you, please consult a licensed tax professional. The following are the distribution types we support:

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

Premature

A premature distribution refers to a withdrawal from a retirement account, such as an IRA or 401(k), before the account holder reaches the age of 59½. Typically, these distributions are subject to a 10% early withdrawal penalty in addition to ordinary income taxes.

Disability

A disability distribution is a withdrawal from a retirement account due to the account holder's disability. If the account holder becomes permanently disabled and can provide appropriate documentation or proof of their disability, they may take distributions without incurring the typical early withdrawal penalty. While the distribution may still be subject to regular income taxes, the penalty for early withdrawal (which is generally 10%) is waived in cases of qualifying disability. For more information on what qualifies, please seek a licensed tax advisor.

Excess contributions

An excess contribution refers to money contributed to a retirement account that exceeds the allowable limit set by the IRS for a given year. For example, if you contribute more to your IRA or 401(k) than the annual limit permits, that extra amount is considered an excess contribution.

Excess contributions can lead to tax penalties if not corrected. Typically, an excess contribution must be withdrawn or corrected by the tax filing deadline (including extensions) for the year in which the excess was made to avoid penalties. If not corrected, it may be subject to a 6% excise tax for each year the excess amount remains in the account.

Where and how do I submit a distribution?

Please note that premature and normal distributions can be submitted via the Webull mobile app, website, or desktop. All other distribution types require an IRA distribution form. For more information and guidance on submitting a distribution request, please refer to Taking a distribution.