Your Distribution and Withholding Options

Your age is likely the first factor to consider when you’re withdrawing from a retirement account. “Normal” distributions typically occur after the age of 59½.

Early withdrawal penalties could apply if you’re younger than 59½. If you're older than 72, you must withdraw at least the required minimum distribution (RMD) calculated according to IRS guidelines. RMDs do not apply to Roth IRAs.

Depending on the redemption options you assigned to your account, you can request funds over the phone, in writing or online.

Cash

You can request that a check be sent to your address of record, or a seasonal address if you have more than one residence. You can also establish a bank account where we can send money directly. Your bank account must be on file for at least 15 days to redeem to it or you can waive the 15-day holding period by supplying a signature guarantee on the retirement distribution form.

Reinvest

Instead of receiving cash for your distribution, you can choose to reinvest the money in another account you own, or you can purchase shares for a new account. Please refer to the IRA Distribution Form for details.

Choose how often you would like to receive your distribution. It can be as infrequent as once a year, or multiple times a month. You choose the dates, amount and delivery method. You can choose a specific dollar amount, a required minimum distribution (RMD) or a series of substantially equal period payments.

The money can be sent in the mail, through a direct deposit to your bank or reinvested in another Janus Henderson account. For details and instructions, please see the IRA Systematic Distribution Form or call a Janus Henderson Retirement Specialist at 800.525.1093.

By default, Janus Henderson will automatically withhold 10% for IRAs (excluding a Roth IRA) and 20% from Qualified Retirement Plans of your distribution unless you opt out of withholding or request a different amount to withhold. You can choose to have a different rate - including any rate from zero to 100%. For further instructions and a rate table that helps in choosing the rate appropriate for your tax situation by accessing IRS Form W-4R at www.irs.gov.

Any federal withholdings are sent directly to the IRS and cannot be reimbursed by Janus Henderson. If your request is made in writing and no withholding instructions are mentioned, we will automatically withhold 10% and prepay to the IRS, plus the mandatory state tax rate, if applicable.

If you would like to withhold state taxes in addition to federal taxes, you must reside in a state that either mandates or allows voluntary withholdings. State withholding can only be taken if you have chosen to make a federal withholding. Check the states below to see if you can withhold for your state taxes.

Mandatory state withholding

There are 16 states that, if you elect to withhold federal taxes, require an additional percentage of your distribution be withheld: AR, CA, CT, DC, DE, IA, KS, MA, ME, MI, MN, MS, NC, OK, OR or VT. State taxes will be withheld from your total distribution based on the appropriate rate for your state.

Voluntary state withholding

If you reside in one of these states, you may voluntarily withhold a percentage of your non-periodic redemption for state taxes in CO, MD, NE, NY or VA.