Tax-Free Withdrawal
/ˌtæksˈfriː ˈwɪðˌdrɔːəl/
Definitions
- (n.) A withdrawal of funds from an account or investment that is exempt from income tax under applicable law.
The individual made a tax-free withdrawal from their Roth IRA during retirement.
Forms
- tax-free withdrawal
- tax-free withdrawals
Related terms
See also
Commentary
Generally arises in contexts of retirement accounts or certain trust distributions where conditions for exemption are strictly defined.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.