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#1301560 - 12/09/09 03:11 PM Early withdrawal penalty on an IRA account
Comply Offline
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Joined: Oct 2003
Posts: 291
Is there a specific number of days that you must give an IRA CD holder in case of an account with an automatic renewal? What is the mandated grace period after that renewal during which withdrawals are permitted without penalty??

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#1301770 - 12/09/09 04:34 PM Re: Early withdrawal penalty on an IRA account Comply
nbk2yj2 Offline
Platinum Poster
Joined: Aug 2006
Posts: 629
Paradise!
I don't believe you need to offer a different length of grace period to accomodate your IRA CD holders. The grace period should be the same as you currently disclose for your non IRA CD owners.

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#1302330 - 12/10/09 02:50 AM Re: Early withdrawal penalty on an IRA account nbk2yj2
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,396
Galveston, TX
Plus, you can waive some or all penalties on a IRA under these conditions:

(a) Where the time deposit is maintained in an individual retirement account established in accordance with 26 U.S.C. 408 and is paid within seven days after establishment of the individual retirement account pursuant to 26 CFR 1.408–6(d)(4), where it is maintained in a Keogh (H.R. 10) plan, or where it is maintained in a 401(k) plan under 26 U.S.C. 401(k); Provided that the depositor forfeits an amount at least equal to the simple interest earned on the amount withdrawn;

(b) Where the depository institution pays all or a portion of a time deposit representing funds contributed to an individual retirement account or a Keogh (H.R.10) plan established pursuant to 26 U.S.C. 408 or 26 U.S.C. 401 or to a 401(k) plan established pursuant to 26 U.S.C. 401(k) when the individual for whose benefit the account is maintained attains age 59 1/2 or is disabled (as defined in 26 U.S.C. 72(m)(7)) or thereafter;
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