Ask Terry Questions Fees For Transerring IRA

Fees For Transerring IRA

By Terry Savage on March 14, 2024 | Wild Card

My mother in law wants to transfer her IRA from US Bank to a Schwab IRA. US Bank wants to charge her a $30 transfer fee, which I understand. But they also want to charge her early withdrawal fee of $315.20, because they have her money in a 60 month CD which won’t expire until September of 2027. The amount in her IRA is only $9667.73. she only made $25 in interest last year, but they charged her $30 in maintenance fees. Is there anyway she can avoid the 315.20 penalty? Thank you.

Terry Says

Is she over age 73? If so, there should be NO penalty for breaking a CD (because of Required Minimum Distributions).
But if she is under that age, ask for the manager. Tell her what you told me. And also tell her that you contacted me, and I said it would make an interesting column if they didn’t let her go without penalty!
Let me know what happens. I’m serious! Stuff like this makes my blood boil! Be sure to get a name and phone number if they turn you down!



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