Answer:
Answer from Randy: Any penalties assessed by the bank after the first six days after deposit are totally up to the bank and the depositor's contract with the customer. The bank is "allowed" to waive any required penalties under certain circumstances for IRA accounts - see 204.2(c)(1) - footnote 1.
Answer:
Answer from Andy: The customer is confusing the IRS penalty rules with those of the depository institution. You are not required to waive your penalty because the customer is of age to draw from the IRA. As Randy noted, it is an option but you should have the penalty provision solidly in your agreement.
First published on BankersOnline.com 3/7/11
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