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How Do I Withdraw From My Bitcoin IRA and Take a Distribution?

A withdrawal from an IRA is normally called a distribution. The distribution must follow the supported IRA process so ownership, account records and required reporting stay accurate.

This is not tax advice and is for educational purposes only. Bitcoin Well does not provide tax or investment advice. Speak with a qualified tax professional about how a Bitcoin IRA applies to your situation.

Distribution or transfer?

A distribution and a transfer are not the same.

A distribution sends money or property out of the IRA to you or another eligible recipient.
A transfer moves IRA assets directly from one IRA custodian to another without you taking possession.

If your goal is to move the retirement account—not withdraw from it—ask the receiving custodian whether a transfer or rollover is the correct process before moving any assets.

Before you request a distribution

Confirm:

Whether you want a partial or full distribution;
Whether the IRA currently holds cash, bitcoin or both;
Whether the bitcoin must be sold before the distribution can be completed;
Which distribution methods are available for your account;
Whether Heritage IRA requires forms, identity checks or tax-withholding elections; and
Whether you are required to take a minimum distribution.

The options shown for your IRA are the ones that apply to your request. Do not assume that every distribution can be sent as bitcoin.

Request a distribution

Sign in to Bitcoin Well and open your IRA account.
Review the available cash and bitcoin balance.
Start the available distribution request. Contact Bitcoin Well support if a distribution option is not displayed.
Choose whether you are requesting a partial or full distribution.
Enter the requested amount and review the available delivery methods.
Follow any instructions to sell bitcoin first or request an available in-kind distribution.
Complete any forms, identity checks, banking details or tax-withholding elections requested by Heritage IRA.
Review the request carefully and submit it.
Monitor the request and keep the final confirmation for your records.

If bitcoin must be sold first, the sale proceeds remain inside the IRA until Heritage IRA completes the distribution.

Warning: Do not send IRA-owned bitcoin directly to a personal wallet before the distribution has been approved and processed through the supported IRA workflow.

How are Traditional IRA distributions treated?

Taxable amounts distributed from a Traditional IRA are generally included in ordinary income.

If you are under age 59½, an additional 10% tax may apply to the taxable part of an early distribution unless an exception applies.

Bitcoin Well cannot determine whether your distribution is taxable or whether an exception applies.

How are Roth IRA distributions treated?

Qualified Roth IRA distributions may be tax-free.

The result can depend on the Roth IRA five-year rule, your age, the reason for the distribution and whether the distribution includes contributions, conversions or earnings.

Bitcoin Well cannot calculate the taxable and non-taxable portions of a Roth IRA distribution.

What are required minimum distributions?

Traditional, SEP and SIMPLE IRAs are generally subject to required minimum distribution rules once the owner reaches the applicable starting age.

The original owner of a Roth IRA is not generally required to take lifetime required minimum distributions. Different rules apply to inherited accounts and beneficiaries.

Ask Heritage IRA or a qualified tax professional to confirm your required amount and deadline.

Need help with the request?

Contact Bitcoin Well support through the Help Centre chat or email hello@bitcoinwell.com. Include the IRA involved and whether you are requesting a partial distribution, full distribution or account transfer.

Never send support your password, verification codes, private keys or recovery phrase.

Official IRS resources

Updated on: 02/10/2026

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