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Withdrawing funds from your account

The simple answer: yes. But what funds you're withdrawing, when you're withdrawing them, and why will affect whether you'll have to face any taxes or penalties. That said, if you do need to take money from your account, you can simply make a withdrawal.

Your RetireReady NJ account is a Roth IRA and is designed to help you save for retirement over the long term, but we understand that each person's situation is different. It's your money, after all, and you can manage your account as you like.

If you choose to withdraw money from your account, you could incur penalties and owe taxes.


Withdrawals can be made without taxes and penalties


Withdrawals may trigger taxes and penalties

Although you can withdraw your contributions at any time without taxes or penalties, the earnings on your contributions (that is, the interest and/or dividends on the money you have invested) are treated differently. If you take money out and you don't meet the IRS criteria for a "qualified" distribution, you will need to include the earnings in your income for the tax year. If you withdraw money from your account before you turn age 59½ by requesting a "nonqualified" distribution, you'll pay a 10% penalty on the earnings portion of your distribution. You may wish to consult a tax advisor to be sure you understand the impact of any withdrawals you make.

Now is the time to start building a stable financial foundation. Investing in yourself lets you take control of your financial future; you decide how much to save and when to access your investment in the case of unexpected emergencies.

In fact, when the Social Security program was created, it was never meant to be one's only source of retirement income.1 The average monthly Social Security benefit in 2023 is $1,782 ($21,384 per year).2 To help make ends meet and supplement any benefit payments you receive, it's important to save early in a retirement savings program like RetireReady NJ.

Yes. You are able to transfer savings in your account to another IRA you own without incurring a penalty or paying taxes, as long as the transfer takes place between the accounts. Just remember that the IRS lets you make only one rollover in a 12-month period and this limit applies to all IRA types (both Traditional and Roth).

Still have questions?

We've got answers in our FAQs.

Access the forms you'll need

You can do a lot with your RetireReady NJ account online. If you need them, we provide the forms you may need to make use of our most popular features.


1. What is the maximum Social Security benefit? AARP.

2. Policy Basics: Top Ten Facts about Social Security (2023, April 17)

Last Updated: Thursday, 05/16/24