To withdraw money from a brokerage account, link a bank account in your name, confirm the cash in your brokerage is settled, and send it by ACH, wire, or paper check from the transfers section of your platform. ACH is free and takes two to four business days. Wires arrive the same or next business day but carry a fee. Moving cash that’s already in the account has no tax impact; what can trigger taxes is selling investments to generate that cash in the first place.
Make Sure the Cash Is Settled
Cash that’s been sitting in your account in settled form can leave immediately. Cash that came from a recent sale cannot. Every securities trade goes through a settlement period before the proceeds are yours to move, and most securities now settle on a T+1 basis — one business day after the trade executes. The SEC’s amended Rule 15c6-1 shortened the standard cycle from two business days to one on May 28, 2024.1U.S. Securities and Exchange Commission. Shortening the Securities Transaction Settlement Cycle
Until settlement finishes, the money shows as “unsettled” or “pending” and can’t be transferred out. Once it moves to settled status, you’re free to withdraw it.
There’s a second hold that catches people off guard. If you recently deposited money into your brokerage by ACH, many platforms impose their own hold (often five business days) before that deposited cash becomes withdrawable, even if it’s already available for trading.
Link a Bank Account in Your Name
Before anything can leave, you need a verified connection between your brokerage and a bank account. You’ll provide your bank’s nine-digit routing number and your account number, and the brokerage will route the transfer through the ACH network.
Verification works one of two ways. Many platforms offer instant verification, where you log into your bank through the brokerage’s portal to confirm ownership. If that’s unavailable, the brokerage sends two small deposits (under a dollar each) to your bank, and you confirm the exact amounts to prove access. Micro-deposit verification takes one to three business days.
Most brokerages require the receiving bank account to be in the same name as the brokerage account. Sending money electronically to someone else’s bank account is typically not allowed. If you need the funds to reach a third party, a paper check or a wire with additional authorization paperwork is usually the only path. For larger withdrawals or international transfers, firms may require a wire authorization form or a letter of authorization, often with a signature guarantee and a copy of your photo ID to satisfy anti-money-laundering rules.2U.S. Securities and Exchange Commission. Anti-Money Laundering (AML) Source Tool for Broker-Dealers
Choose a Transfer Method
Once the bank is linked and the cash is settled, the withdrawal itself is quick. Log in, go to the transfers or money movement section, choose your brokerage as the source and your bank as the destination, enter the amount, and submit. You’ll get a confirmation email with a reference number.
The timeline and cost depend on which method you pick:
- ACH transfer. Free at virtually every major brokerage. Funds typically leave within one business day, and the receiving bank may take another one to three business days to post. Plan on two to four business days total.
- Wire transfer. Usually same-day or next-business-day delivery. Expect roughly $15 to $25 for a domestic outgoing wire. Charles Schwab, for example, charges $25 per wire or $15 if submitted online. International wires typically run $25 to $50 depending on the destination.3Charles Schwab. Charles Schwab Pricing Guide for Individual Investors
- Paper check. Mailed to your address on file. Averages five to seven business days before it arrives and you can deposit it.
Federal holidays and weekends push any of these out. If you need the money by a specific date, start the transfer at least a week ahead.
Taxes on What You Sold
Moving settled cash from your brokerage to your bank is not a taxable event. The tax question, if there is one, was decided earlier — when you sold investments to raise the cash.
Selling for more than you paid produces a capital gain. How it’s taxed depends on how long you held the investment:
- Short-term gains (held one year or less) are taxed as ordinary income at your regular rate.
- Long-term gains (held more than one year) are taxed at 0%, 15%, or 20% depending on your taxable income.4Internal Revenue Service. Topic No. 409, Capital Gains and Losses
High earners face an extra layer. If your modified adjusted gross income exceeds $200,000 (single) or $250,000 (married filing jointly), a 3.8% Net Investment Income Tax applies on top of your capital gains rate, pushing the effective top rate on long-term gains as high as 23.8%.5Internal Revenue Service. Net Investment Income Tax
Selling at a loss has its own rules. Losses can offset gains and up to $3,000 of ordinary income per year. The wash sale rule disallows the deduction if you buy the same or a substantially identical security within 30 days before or after the sale.6Internal Revenue Service. Case Study 1 – Wash Sales This commonly trips people up when they sell a fund to raise withdrawal cash and then reinvest in the same fund shortly after.
Your brokerage reports all sales on Form 1099-B, which you’ll receive by mid-February of the following year.7Internal Revenue Service. Instructions for Form 1099-B (2026)
Taxes If It’s a Retirement Account
Pulling money out of a retirement account is a different situation. Taxes depend on account type, your age, and whether the money went in pre-tax or after-tax.
Traditional IRA and 401(k)
Distributions from a traditional IRA or 401(k) are taxed as ordinary income because contributions were made with pre-tax dollars.8Internal Revenue Service. 401(k) Resource Guide – General Distribution Rules Federal withholding is automatic, but the default rate differs:
- 401(k) eligible rollover distributions. Mandatory 20% federal withholding. You cannot elect a lower rate unless you do a direct rollover to another retirement account.
- Traditional IRA distributions. Default 10% federal withholding. You can elect a different rate, including 0%, by filing Form W-4R with the custodian.9Internal Revenue Service. Form W-4R – Withholding Certificate for Nonperiodic Payments and Eligible Rollover Distributions
If you’re under age 59½, a 10% early withdrawal penalty applies on top of the regular income tax.10Office of the Law Revision Counsel. 26 USC 72 – Annuities; Certain Proceeds of Endowment and Life Insurance Contracts Several exceptions can waive the penalty, including total and permanent disability, large unreimbursed medical expenses, and (for IRAs) a first-time home purchase up to $10,000.11Internal Revenue Service. Retirement Topics – Exceptions to Tax on Early Distributions Withholding is only a prepayment; your true liability is settled when you file, and the distribution is reported on Form 1099-R.12Internal Revenue Service. 2025 Instructions for Forms 1099-R and 5498
Roth IRA
Roth IRAs are friendlier because contributions went in after-tax. You can withdraw your contributions at any time, at any age, with no taxes or penalties. The Roth ordering rules treat contributions as coming out first, so most people who haven’t withdrawn more than they put in will owe nothing.
Earnings are different. To take Roth earnings out tax-free and penalty-free, you need to be at least 59½ and have held the account for at least five years. Pulling earnings before meeting both conditions makes the earnings portion taxable and potentially subject to the 10% early withdrawal penalty.
Watch Out If It’s a Margin Account
If your brokerage account is a margin account, withdrawing can create a situation you didn’t plan for. Margin accounts let you borrow against your holdings, and if you withdraw more cash than your settled free balance, the brokerage treats the excess as a margin loan. You’ll be charged interest for as long as it’s outstanding, often several percentage points above the federal funds rate.13Investor.gov. Investor Bulletin – Interested in Margin? Understand Interest
The subtler risk is a margin call. Brokerages require a minimum level of equity (typically 30% of your portfolio’s value) in a margin account. A cash withdrawal reduces your equity, and if it falls below the maintenance threshold, the brokerage can demand you deposit more money or sell securities to cover the shortfall. Before withdrawing from a margin account, look at your “cash available to withdraw” figure rather than your total cash balance. That number already accounts for the margin requirement.