Ask Experts Questions for FREE Help !
Ask
    foreverromantic's Avatar
    foreverromantic Posts: 176, Reputation: 1
    Junior Member
     
    #1

    Jun 7, 2017, 04:16 PM
    2017 rmd withdrawal from cd ira
    I have a CD Ira Retirement maturing in Oct. 2017 in NY. I need to take my RMD now and would like to take it from that account as it is the amount exactly to satisfy my 2017 RMD. I live in Florida. I almost had a heart attack at age 76 when they told me they would charge me a PENALTY OF $ 295.00 to remove it before the maturity date. The maturity date should have nothing to do with RMD withdrawals. I asked my Financial Consultant here in FL. and the Bank Mgr. and they both said 'IT IS AGAINST THE LAW TO CHARGE A PENALTY'. "That it is a FEDERAL LAW". They called me with a conference call and they KEEP INSISTING I WILL PAY $ 295.00 PENALTY TO TAKE MY MONEY NOW. I need the money now. Will file a formal complaint with the Federal Agency who oversees this NY. BANK, but what do you say about this? I am 76 and never had this problem before.
    They FED EXed a bunch of old statements to me going back 6 years. don't know why. I mailed them filled out and signed the form they told me was pertinent and they never got it. I have a 50 year relationship with them, which has gone sour with them. HOW DO I GET MY MONEY?
    ebaines's Avatar
    ebaines Posts: 12,130, Reputation: 1307
    Expert
     
    #2

    Jun 8, 2017, 05:41 AM
    Here's an article that explains it:

    https://www.fool.com/knowledge-cente...a-certifi.aspx

    Note this sentence: "However, if you begin taking required minimum distributions from your IRA at age 70.5, which the IRS mandates, and those distributions result in an early cash-out of a CD, some banks may waive the associated early withdrawal penalty." I infer this means that there's no law mandating the fee be waived, and so some banks don't waive it. Why not wait till the CD matures in October to cash it out? You have until December to take your RMD for calendar year 2017. Alternatively do you have other investments you can use for the RMD?

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Is it true that Social Security will end in 2017 for senior citizens? [ 7 Answers ]

What is the answer for us seniors?

H1B expiring ; have tourist visa stamp till 2017; is it still valid? [ 0 Answers ]

I'm a doctor and about to complete my residency training this year thus my H1B expires on June 30, 2012. I have a multiple entry B1/B2 visa stamp valid till 2017 on my passport. I need to take the boards here on aug. My question is can I leave the US and go home then reenter the US like say end of...

IRA Withdrawal at 70-1/2 [ 1 Answers ]

I will turn 70-1/2 in July of 2007. Is it better to withdraw the required amount for 2007 prior to July, or can I wait until December? I remember reading something about if one waits too long that you have to take two withdrawals in one year. I would prefer not to have to do that. Thank you.

Hardship withdrawal for early withdrawal of 401K [ 0 Answers ]

I am, 56 years old, live in the State of Florida, and just lost my job. I have a small 401K ($6,000) with this company and want to withdraw all of it and put it in a savings account to help tide me over until I find another job. I know I will be charged a 10% early withdrawal fee, and I also...


View more questions Search