IRA - New Feb Reg

Posted By: OliverQ

IRA - New Feb Reg - 01/10/12 05:35 PM

Hello,

One of our customers said that another bank told them that there was change in regulations on IRAs occuring in February. They said that the reg will state that banks have to charge a $50 fee for closing out an IRA account. I tend to doubt it and have read nothing on it, but wanted to make sure I'm not missing anything?

Thank you!
Posted By: Doug Hendrickson

Re: IRA - New Feb Reg - 01/10/12 05:40 PM

The only government "fee" of which I'm aware is the tax penalty fee of 10% that is imposed if you close or withdraw money from an IRA before you are 59 1/2. I have not heard of any changes to that tax penalty fee. Some banks do charge customers for closing IRAs, so that particular bank may be changing it's fee.
Posted By: Elwood P. Dowd

Re: IRA - New Feb Reg - 01/12/12 06:52 PM

Quote:
One of our customers said that another bank told them...


That's not really a good pedigree for a source of good advice. You can chase someone else's rabbit or you can just tell the customer you're not aware of any such change, but if he could get you some sort of citation to authority, you will be glad to track it down.

It's simply not credible; the IRS is not in the business of mandating that banks charge certain fees.