Posted By: el guapo
Interest Penalties on CDs within an IRA Plan - 03/05/05 12:01 AM
I just wanted to see how different financial institutions handle this situation. What is your general policy regarding waiving interst penalties on CD's when a customer is taking their mandatory distribution? Do you completely waive all interest penalties for any distribution amount if the customer is over 70 1/2? Do you only waive the interest penalty for the actual minimum distribution amount at your institution? Do you waive it for their aggregate distribution amount if they can provide proof? Is there a huge difference between what your actual policy is and what is practiced at the branch level?