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IRA CD Early Withdrawal Penalty

bbug
bbug   |     |   7 posts since 2010

I've been told by banks on numerous occasions that, since I'm over 59 1/2, there is no early withdrawal penalty for partial or full withdrawals, but I'm leery.

Can anyone confirm or refute this?

Bill



Answers
Ken Tumin
Ken Tumin   |     |   5,706 posts since 2009
In terms of the early withdrawal penalty charged by the banks or credit union, it depends on the institution. Some waive an early withdrawal penalty on IRA CDs for those of 59 1/2. Two examples:
bbug
bbug   |     |   7 posts since 2010
I was told once or twice it was in accordance with the law (I assume Federal), but I guess not. That's what I was hoping for.

But when my next maturity comes, I'll be sure to check for institutions with no penalties in my circumstances and in writing. It might result in a tolerable rate.

Thanks for the reply.

Bill
rsven
rsven   |     |   1 posts since 2011
I have just checked into this and CITIBANK does not charge early withdrawal penalty for IRA customers over 59 1/2.
lou
lou   |     |   634 posts since 2010
Yeah, but what rate will Citibank offer you.