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Using IRA but avoiding CD penalty

By Terry Savage on July 28, 2019 | Wild Card

I have several IRAs at my local bank. Each is in a bank CD from separate years. None of them will mature until next year.
I had dental surgery this year which was above what my insurance covered and I am responsible for the remaining balance.
How do I go about withdrawing money from one of the IRAs without incurring penalties for early withdrawal?
Thank you,
Mary Wright

Terry Says

If you have reached age 70-1/2 — the age at which you are required to start making withdrawals –there should be NO penalty. It’s not a federal requirement, but most banks will waive the CD early withdrawal penalty for a mandatory withdrawal.  If you are under that age (but over 59-1/2) you might incur the penalty of 3 months loss of interest on the CD.  While the rate is likely low, so the penalty would be minimal (and far less expensive than putting it on a credit card), you could go in to the bank to waive it — or at least let you know how to minimize it by waiting until the last three months to cash it in.

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