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#2039120 - 09/17/15 05:09 PM IRA Transfer Fee
ahkcompliance Offline
Diamond Poster
Joined: Sep 2008
Posts: 2,470
Midwest
We charge a fee to a customer if they are transferring their IRA to another institution. The way we currently charge this fee is by doing doing 2 transactions. One for the closing of the account and one for the fee. We are having a problem because the fee is always going to the non-post list because the closing withdrawal posts first due to tran code.

We were wondering if we can do one closing withdrawal which includes the fee or does the fee have to be itemized for tax purposes? I have been looking but can't find really anything related to this type of fee.

Any advice would be appreciated.

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#2039181 - 09/17/15 07:15 PM Re: IRA Transfer Fee ahkcompliance
el guapo Offline
Gold Star
el guapo
Joined: Jul 2004
Posts: 345
That is really going to be more about your system limitations. Your system would have to do one closing withdrawal and automatically separate the closing fee from the reportable distribution amount. Why can't you post the fee first then the closing distribution?

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#2039303 - 09/18/15 01:27 PM Re: IRA Transfer Fee ahkcompliance
ahkcompliance Offline
Diamond Poster
Joined: Sep 2008
Posts: 2,470
Midwest
Thanks for your response. I think the issue lies in the tran code being used. I am having operations look over the tran codes and to make sure they are using the right ones or if another should be used.

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#2039521 - 09/18/15 08:07 PM Re: IRA Transfer Fee ahkcompliance
BrianC Offline
Power Poster
BrianC
Joined: Nov 2004
Posts: 6,207
Illinois
The other thing to look at is the system parameters that drive payment order. Sometimes changing a payment code within the tran code will alter the order of payment. (i.e. debit card tran codes have a parameter that forces them to be paid first, followed by cash items, ACH, then checks.)
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