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1. Wednesday, June 8, 2011 - 7:06 PM
Hi TJJackson:
Would you write to Bob.Sullivan@msnbc.com please. I have done so.
I have reviewed the Truth in Savings Disclosure that was provided at account opening and found nothing about any maintenance fee or the $30 close out fee. I had made specific inquiry at the branch (a small counter in a Safeway store) about fees associated with the Roth IRA and was told that it was a CD and there were no fees associated. This is a complete outrage. My concern is that they got away with a $10 fee last year; if they get away with a $30 fee this year; next year they will charge a $50 plus fee so they don't have to pay interest. I have repeatedly asked that I be allowed to transfer my Roth IRA to a different bank since they are changing terms mid-way and they told me I would have to pay a $30 closing fee plus the early withdrawal penalty, which is pretty hefty. I just hope other banks don't start doing this. Seems like they will hit the jackpot, since we can only open a Roth IRA with $5,000 each year and the fees will completely eat into any interest that we earn. Also one more thing to note is that although I am not sure, iit looks like we can do only one rollover per year so if you have more than one IRA CD you cannot rollover more than one. Please see:
http://www.investopedia.com/artic...zz1OjKSL56
One-Year Waiting Rule
Within one year after you distribute assets from your IRA and rollover any part of that amount, you cannot make another rollover from the same IRA to another (or the same) IRA.
For example, imagine that you have two IRAs - IRA-1 and IRA-2 - and you make a tax-free rollover from IRA-1 into a new IRA (IRA-3).
Within one year of the distribution from IRA-1, you cannot make another tax-free rollover from IRA-1 or from IRA-3 into another IRA. However, you could roll funds out of IRA-2 into any other IRA because you did not roll money into or out of that account within the previous year.
Would you write to Bob.Sullivan@msnbc.com please. I have done so.
I have reviewed the Truth in Savings Disclosure that was provided at account opening and found nothing about any maintenance fee or the $30 close out fee. I had made specific inquiry at the branch (a small counter in a Safeway store) about fees associated with the Roth IRA and was told that it was a CD and there were no fees associated. This is a complete outrage. My concern is that they got away with a $10 fee last year; if they get away with a $30 fee this year; next year they will charge a $50 plus fee so they don't have to pay interest. I have repeatedly asked that I be allowed to transfer my Roth IRA to a different bank since they are changing terms mid-way and they told me I would have to pay a $30 closing fee plus the early withdrawal penalty, which is pretty hefty. I just hope other banks don't start doing this. Seems like they will hit the jackpot, since we can only open a Roth IRA with $5,000 each year and the fees will completely eat into any interest that we earn. Also one more thing to note is that although I am not sure, iit looks like we can do only one rollover per year so if you have more than one IRA CD you cannot rollover more than one. Please see:
http://www.investopedia.com/artic...zz1OjKSL56
One-Year Waiting Rule
Within one year after you distribute assets from your IRA and rollover any part of that amount, you cannot make another rollover from the same IRA to another (or the same) IRA.
For example, imagine that you have two IRAs - IRA-1 and IRA-2 - and you make a tax-free rollover from IRA-1 into a new IRA (IRA-3).
Within one year of the distribution from IRA-1, you cannot make another tax-free rollover from IRA-1 or from IRA-3 into another IRA. However, you could roll funds out of IRA-2 into any other IRA because you did not roll money into or out of that account within the previous year.
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