If you have an IRA CD, most places will waive the EWP if taking a MANDATORY RMD on a TRADITIONAL IRA CD. However, most will NOT waive the EWP on a Roth IRA (since a Roth doesn't require any mandatory RMDs).
One of the few places where you can take a penalty-free early withdrawal from a Roth IRA CD (if over 59.5 years old) is PENFED (as long as you keep at least $1k and it's a "distribution" to yourself, not a transfer to another institution). BUT... they don't allow you to Add-On to your IRA CD the way NavyFed does -- AND CD rates are NOT guaranteed until the funds arrive at PenFed (which can take weeks to months when you're talking institution-to-institution transfers).
On the other hand, NavyFed allows yearly Add-Ons to your IRA CD from basically mid-Jan to mid-April each year -- which is really nice if you have a good rate CD and want to simply add to it with each year's contribution. But does NOT offer any penalty-free partial withdrawals of any kind for a ROTH CD. (It's treated just like a normal CD as far as EWP goes).
However, is there ANY PLACE that has BOTH? (Both allows you to Add On year contributions to the same CD, as well as offering penalty-free partial early withdrawals on *ROTH* IRAs (not Traditional ones with mandatory RMDs)?
I'd like to continue to contribute to a Roth as I can as I approach 59.5 in the coming years, but honestly, I'm not working much now and I'll probably need the money most between 60yrs-65yrs (I can collect my pension at 65). So I'm looking for someplace where I can add yearly to a long-term good-rate ROTH IRA CD but take parts of it out penalty-free as needed once I'm 59.5.
Maybe no place exists that offers both, but since both NavyFed and PenFed are huge CUs and offer one (but not the other), I thought I'd ask here if there are any places that allow both for ROTH CDs: letting you Add On at least once a year, and also do early (partial) withdrawals if you're over 59.5 without any penalty (on a ROTH IRA, not traditional)..... ???
Thanks!
