IRA In CD transfer to another CD
I am now in a IRA/CD. The amount is a little over $5000 . I have had this account for over 21 years and every 4 years it rolls over into another 4 year IRA/CD, paying their lowest interest which is currently .10% . Unfortunately,I am always out of the country in April when it rolls over into another 4 year certificate.
I am 76 years old and they send me the minimum distribution every year in October. The IRA/CD is up this April
How can I transfer this money to another bank without paying taxes on the $5000? The interest I would lose is minimal.
Also twice I received a letter from Chase Bank stating that because of inactivity the state of IIlinois would be taking over my money,I had to go to the bank and sign a statement to prevent this.
I bought and read the 2nd. of THE SAVAGE TRUTH ON MONEY, but this was not covered. Thanks!
Terry Says
OK, you really do need to take action. I’m assuming the CD is at Chase bank. You don’t have to switch banks. What you should do is walk in there right now and tell them that when the CD matures, you want it reinvested in a 6-month CD in your IRA. And have it automatically roll over every 6 months at the then-current rate. If rates rise, you’ll earn more.
Shame on Chase for taking advantage of a senior, and not suggesting this themselves a long time ago! But if you move the money to another bank custodian it will just take time and energy. What I described above is the way to solve your problem.
