You can move money in your retirement or investing account back to your checking account if needed. But, there are a few things to keep in mind that differ from withdrawing from your other savings goals.
When withdrawing from your retirement or investment accounts, we have to liquidate your investments to cash, then withdraw the funds to your linked bank account. This liquidation and withdrawal process takes 5-7 business days to complete.
Withdrawing from retirement
Money saved towards your retirement account that hasn’t been invested yet can be withdrawn back to your checking account without any tax penalty.
Invested funds in your Retirement IRA can still be withdrawn, but they may be subject to early withdrawal penalties from the IRS if you’re withdrawing from your IRA before you turn 59 and 1/2 years old. More information from the IRS here.
If you have a Traditional IRA, your deductible contributions and earnings (including dividends, interest, and capital gains) will be taxed as ordinary income. The IRS typically applies a 10% penalty on early withdrawals from a Traditional IRA, and a state tax penalty may also apply.
If you have a Roth IRA, you can withdraw the contributions (i.e. - the cash you deposited into your retirement account) you made to your Roth IRA anytime, tax and penalty-free. However, you may have to pay taxes and penalties if you withdraw earnings from your Roth IRA.
See: Tax on Early Distributions | Internal Revenue Service
Withdrawing from investing
You can withdraw funds from your investing account at any time without tax penalty. Any investment gains and dividends in your investing account may be subject to taxes.
When tapping on Withdraw on your investing screen, you'll see an explanation of what withdrawing may entail. To continue withdrawing, tap Continue to sell.