Signature on an IRA Certificate

Posted By: cbailey

Signature on an IRA Certificate - 04/25/16 07:31 PM

Is there a requirement that a customer sign an IRA certificate of deposit at account opening? We are looking at a current vendor upgrade. It no longer asks that the depositor sign and date the certificate. The customer does sign the IRA Contribution/Investment form and the IRA Eligibility & Information form.

Thank you
Posted By: osucpa

Re: Signature on an IRA Certificate - 04/25/16 08:07 PM

Are you talking about the signature card?
Posted By: Elwood P. Dowd

Re: Signature on an IRA Certificate - 04/25/16 08:23 PM

Many, if not most, banks have eliminated the "certificate of deposit" for IRAs. They give the participant a receipt for the deposit, nothing more. These are referred to as "book entry" deposits. (The "certificate" was a bank invention from the 1930's, it serves no purpose whether or not the account is an IRA.)

There never was a legal requirement that the customer sign a certificate of deposit, hence osucpa's question.
Posted By: cbailey

Re: Signature on an IRA Certificate - 04/25/16 08:49 PM

Thank you Ken, that is what I wanted to be sure of.
Posted By: BowlingQueen

Re: Signature on an IRA Certificate - 04/28/16 03:10 PM

We have the customer sign the "account agreement" portion of the CD, which is mostly for the signature specimen, receipt of required disclosures and the terms of the CD.